Barcelona have confirmed that midfielder Fermin Lopez has signed a new contract at Camp Nou.

The 20-year-old spent the 2022-23 campaign on loan with Linares Deportivo in Spain's third tier, and he scored 12 goals and registered four assists in 40 appearances for the club during a successful spell.

During pre-season, Barcelona head coach Xavi said that Lopez would be involved with the first team this season and that has been the case in the early weeks of the 2023-24 campaign.

The Spaniard was an unused substitute in the opening two games of the new La Liga season against Getafe and Cadiz, before debuting off the bench in Sunday's 4-3 win over Villarreal.

Barcelona have now confirmed that an agreement has been reached over a new contract for the midfielder, with his terms now running until the summer of 2027.

"The player Fermin Lopez has reached an agreement with FC Barcelona to extend his contract until 30 June 2027," read a statement on the Catalan outfit's official website.

Meanwhile, it has been revealed that there is a buyout clause of €400m (£344m) in his new deal.

Speaking after Sunday's 4-3 win over Villarreal, Xavi said that Lopez's development shows that the club should always look to their academy to produce first-team players.

"I was also given (the opportunity) and they bet on me. I have no qualms about putting people in who work. Fermin is an example. We must look at the academy and more at the economic situation that we are currently in. We will look more at home, of course," said the manager.

"I was scared at 16 and I tell them they are not. We trust the academy and I have seen the benefits. We are going to give it to them because they deserve it. They must be used because they measure up."

Lamine Yamal, 16, has also been excellent for Barcelona early this season, and he produced a man-of-the-match performance against Villarreal, leading to Xavi revealing that the teenager is now considered to be "a starter".

"Lamine is a starter because we can see he makes the difference for us. He's smart and makes good decisions," said the manager following the seven-goal thriller with the Yellow Submarine.

"Of course he surprises me, like he does to everyone else. His best quality is his decision-making, it's almost always correct. Talent is valued, and Lamine Yamal is a differential player."

Barcelona continue to work on a deal for Manchester City's Joao Cancelo late in the transfer window, while the club are also exploring the possibility of signing Joao Felix on loan from Atletico Madrid.