Real Madrid reach agreement with Vinicius Junior to sign new contract.

Vinicius Junior has reached an agreement to renew his contract at Real Madrid with the Spanish club preparing to announce the forward’s new deal by the end of the week.

Madrid and Vinicius Jr met on Wednesday to discuss the Brazil international’s future and sources with knowledge of the talks, granted anonymity to protect relationships, indicated a package was proposed that reflects his importance to the club and their project.

Vinicius Jr had to then decide whether to renew, enter free agency next summer when his current deal expires or pursue the opportunity provided by Arsenal, who were ready to launch an ambitious move should he choose not to remain in Madrid.

Sources, though, have told The Athletic that it is anticipated that Vinicius Jr will finally commit his future at the Bernabeu, ending Arsenal’s pursuit, after initially beginning talks over a new deal in January 2025.

Arsenal’s ownership were fully behind pushing ahead with a move for the 26-year-old in the event he was available and had made him their top target to bolster their forward line following their Premier League title win last season. Vinicius Jr was open to joining Arsenal if he chose not to renew his Madrid terms.

How big would a renewal be for Real Madrid?

A renewal has always been seen as the most logical outcome given that the priority for Madrid and Vinicius Jr has always been to stay together.

There have been periods of significant distance between the parties, with months passing without any negotiations or signs of a rapprochement. Talks first started in January 2025.

For Madrid, this is be a major coup to retain one of the world’s best players — capable of scoring 22 goals and providing 14 assists even in a modest season like last year — as well as a major commercial icon.

The financial and reputational factors are also be significant. Madrid were hoping not to lose one of their biggest stars for a fee below market value this year, or for free next summer. In doing so, they also prevent a direct rival in Europe — Arsenal, runners-up in last season’s Champions League and semi-finalists two editions ago — from strengthening their squad.

Would Vini Jr. be worth it for Arsenal?

It also comes with risk.

The disappointing results of the past two seasons have put everyone at Madrid under immense pressure, including Vinicius Jr. The Brazilian has been booed by the Bernabeu crowd in recent months, and some supporters have not been in favour of him extending and receiving a pay rise.

It is easy to imagine that, if he stays and does not start the coming season on the right foot, there would be criticism of both the player and the club for awarding him that.

Still, this is an excellent move for Vinicius Jr. He secures an upgraded contract that enhances his standing both within and outside the club. In addition to that, he has the opportunity to continue developing as part of the super-team Madrid are building.

It also shows he is drawn to the challenge of shining under Mourinho this season — despite the 63-year-old’s comments about him earlier this season.

Real Madrid’s Champions League trip to Benfica on February 17 was stopped after Vinicius Jr alleged Benfica winger Gianluca Prestianni racially abused him. Prestianni denied the allegation and was subsequently banned by UEFA and FIFA after admitting using a homophobic (rather than racist) slur against the Madrid forward.

On the night, Mourinho suggested Vinicius Jr had incited the incident. In comments made to Amazon Prime, he seemed to blame him for provoking the regular racist abuse he has suffered in recent years.

What Mourinho said did not go down well with the forward, sources close to the player said at the time. Those same sources later said the Brazilian had no problem with Mourinho arriving as the club’s new manager.

On Tuesday, Real Madrid TV released an interview with Vinicius Jr after his first training session back with the team following the World Cup.

“(I’m) very well, getting to know the new manager, the new players, and working really hard in training,” he said. “(Mourinho) wants me to be just as I’ve always been: happy, positive, and playing my own style of football.”