Manchester United have been heavily linked with a move for Jose Fonte over the past few weeks.
Jose Mourinho is reportedly in the market for an experienced central defender, and targeted the Southampton captain after a strong showing for Portugal at Euro 2016.
Eric Bailly, Chris Smalling and Daley Blind appear to be the favoured options for United in central defence this season. Marcos Rojo is understood to be on his way to Valencia, and Stoke City are interested in signing Phil Jones.
That leaves a free slot in the squad for another centre-half, but it won’t be Fonte, who has held talks with Southampton, and will sign a new contract.
“The situation of Jose is now finished and he is back to normal,” Saints manager Claude Puel said on Friday morning.
“Jose is now concentrating just on his football and his team. He had a good discussion with the director of football, with the chairman and now everything is all OK.”
“For Jose it was important for us, for me, to keep him in the squad because he is a good personality, a good professional and has good leadership qualities.
“It was important to listen to Jose and understand his position and have time to speak – but now is the time to play and there is no problem with this.”
Fonte has been with Southampton since 2010, and has made over 250 appearances as the club rose through the divisions from League One to become an established Premier League side.
Manchester Evening News report that United won’t follow up their interest in the player now that he has decided to stay at Southampton.