Liverpool and Chelsea have been dealt a blow after Valencia announced that Ferran Torres has penned a new contract.

Earlier this week, both Premier League sides were linked with an approach for the 18-year-old, who has already made 10 appearances for Valencia.

The winger's release clause was alleged to be in the region of £22m, leaving Valencia in a position where they could receive offers for the prospect.

However, the La Liga outfit have revealed that the winger has now extended his deal at the Mestalla Stadium until 2021, with his release clause being increased to £88m.

Torres has made a total of one start and six substitute outings in Spain's top flight this season.