"Real Madrid C. F. and Gonzalo Higuain have reached an agreement to extend the player's contract with the Club to June 2016," a Real statement read.

Higuain was one of Real's top performers last season, hitting 27 Liga goals for the capital side.

The 23-year-old is currently with the Argentina squad in South Africa and is expected to be a starter for Diego Maradona's side this summer.