Kylian Mbappe confirmed his decision to remain at Paris Saint-German in front of the club's supporters on Saturday evening, stating that he "always said that Paris is home".
Mbappe, 23, was presented to the PSG fans at the Parc des Princes ahead of their final game of the season against Metz as his three-year contract was confirmed.
The France international told the crowd: "I'm really happy to continue the adventure here at Paris Saint-Germain. To stay in Paris, my city.
"I hope that I will continue to do what I prefer to with you all, and win titles together Thanks a lot".
PSG president Nasser Al-Khelaifi also addressed the crowd, saying: "I'm proud to give you (PSG fans) beautiful news. Kylian Mbappe has signed until June 2025 with Paris Saint-Germain."
Mbappe has signed a three-year contract with the Ligue 1 side despite Real's attempts to sign the player since last summer.
Mbappe's contract with PSG had been due to expire in June, and it was reported on Monday that he had agreed on personal terms with Real Madrid ahead of a potential free transfer.
The news has not come without controversy, however, as La Liga issued a statement that they would be lodging a complaint about the contract renewal.
A statement on Saturday said that it was "scandalous" that PSG could afford to make the deal, stating that it "attacks the integrity of European football".
Similarly, La Liga president Javier Tebas posted on Twitter to label the deal as an "insult to football".
Mbappe had been at the centre of a transfer saga last summer, when Real made two bids for the forward. Both of those were rejected, despite Mbappe later confirming he had asked to leave PSG.
The France international is regarded as one of the finest forwards in Europe. He has scored 168 goals in 216 games for PSG, having joined them in 2017 from Monaco, the club with which he made his senior debut.
Mbappe won the World Cup with France in 2018 and the Nations League in 2021. He has also won Ligue 1, the French top flight, five times since emerging at Monaco.
On an individual front, he has been named the Ligue 1 player of the year three times, been selected in the Champions League squad of the season three times and was named as the best young player at the 2018 World Cup.