The Mestalla captain, who scored at Barcelona on Saturday, has committed to Valencia with a new three-and-a-half-year deal and a €50m release clause.
Valencia captain Dani Parejo has extended his contract at Mestalla until June 30, 2022.
The former Real Madrid midfielder joined Valencia from Getafe in 2011, quickly establishing himself as a key figure, and continued his fine form this season with his sixth LaLiga goal of the campaign in Saturday’s 2-2 draw with Barcelona.
The club confirmed the length of his contract renewal on Monday and the new buyout clause, set at €50million.
Parejo said: "In all these years at Valencia, I've grown as a person. Now I'm a proud family man, father to two Valencian children who are, of course, Valencia fans.
"I can tell them with pride that I'm captain of a club with 100 years of history and that I work hard every day to wear the armband and to continue to form part of this club.
"I continue to feel the affection of the fans.This is my home and it always has been. I want to stay here for many more years to help make the history of the club even greater. There is plenty more to come."