"This issue has been finally settled," Lucio was quoted as saying by Sport Bild on Wednesday.

"I'm close to extending my contract with Bayern beyond 2010."

The 30-year-old, who joined Bayern from Bayer Leverkusen in 2004, was repeatedly linked with a move out of Allianz Arena.

Reports linked Lucio with a move to several clubs, including Spanish champions Real Madrid.

However, he made it clear that his future lies with German champions Bayern.