Diego Costa signs new deal at Atletico Madrid

Atletico Madrid have extended the contract of Liverpool target Diego Costa by three years until June 2018.

The 24-year-old Brazilian striker was the subject of a £21m bid by Liverpool on 1 August.

Costa joined Atletico from Valladolid in 2010 and scored 10 goals in the Primera Liga last season.

"I am very happy with the deal, it is a very special moment," he told Atletico's website.

"I am delighted with this agreement after fighting for a long time to win the respect and affection of the fans, my team-mates and people in the club."

Atletico finished third in La Liga last season, earning a Champions League place, and beat Real Madrid to win the Copa del Rey.

They sold striker Radamel Falcao to Monaco for a reported £50m fee on 31 May.