Manager Ronald Koeman has revealed that Jay Rodriguez rejected "interest from other big clubs" to sign a new contract with Southampton.
The likes of Tottenham Hotspur, Manchester City and Liverpool had all been linked with the 25-year-old, who is nearing a return to fitness following a year on the sidelines with a knee injury.
However, he has decided to commit his future to the St Mary's Stadium, which Koeman believes represents "a good start to the summer business" for the Saints.
"This is very good news for the club because there was some speculation about Jay and interest from other big clubs, so it is a compliment to the club that we have an agreement," the Dutch boss told the club's official website.
"It has been a difficult time for Jay who has been doing everything to come back in a good shape.
"It's a good start to the summer business for us because it shows that everyone here is convinced by what we want to achieve."
Rodriguez has scored 26 goals in his 76 appearances for the South Coast club.