Neymar has agreed to a new contract with Santos that ties him to the Brazilian club until the South American country hosts the 2014 World Cup.
Despite widespread rumors of a move to Real Madrid or Barcelona, Neymar said Wednesday he made the decision to stay with Santos because it's where he believes he will be the happiest.
Brazil's most promising young star in years, Neymar said the contract will allow him to stay near his family and friends for as long as possible.
''Here is where I'm happy and here is where I want to stay,'' he said at a news conference. ''I've always said that happiness would play a significant role in my decision. It wasn't an easy decision but I'm happy here, with my family, my friends and my teammates.''
Wearing a jersey with the words, ''It's good to be the king,'' Neymar said he is honored to be wanted by Madrid and Barcelona but that it is just as important to be able to wear the famous Santos jersey.
''I'm wearing the jersey that Pele wore and I'll be playing in some of the best tournaments in the world, like the Copa Libertadores and the Club World Cup, which is what I always said that I wanted to do,'' Neymar said.
"My goal is not to be the best in the world, it is to play in the best competitions. Santos are doing just that. They fought for the Libertadores, they are going to play for the Club World Cup. Santos is a massive club, the best player in the world played here.
Santos president Luiz Alvaro Ribeiro said his club will never be able to compete with offers from certain European teams but that Neymar will earn more money in the new deal.
There is also an increase in the buyout clause, but Luiz Alvaro Ribeiro wouldn't disclose the new amount.
"There was interest, but my father did not let me know of any concrete offer. I heard about the interest. I have always said I wanted to stay here and I am very happy to be representing Santos and Brazil.
"I want to thank those clubs [Barcelona and Madrid] who were interested in my football, and the fans who wanted to see me there. It is a great honour to have two huge clubs wanting my football. The clubs wanted me to go over there, but we all have to make choices in our lives. And today, my choice was Santos."