Diego extends his contract

Despite rumours of a move from Werder Bremen to Real Madrid, Brazilian starlet Diego has signed a new contract until 2011 at the German side.

"I am very happy to have prolonged my stay here," Diego told the club's official website.

Werder's director of sport Klaus Allofs welcomed Diego's decision to extend his contract and hopes it will end rumours over a move away from the club.

"The extension of his contract shows what he and the club think of the recent transfer rumours," said Allofs.

"With this new deal, we have made clear that we want to work with him for a long, long while."