The 24-year-old Canadian star defender signed a new contract that will keep him at the Bundesliga club until June 2030.

Davies, who moved from Vancouver Whitecaps to Bayern in January 2019, has been a cornerstone for the team, contributing significantly with five Bundesliga titles and a Champions League trophy.

This season, he has made 25 appearances across all competitions, scoring once and providing three assists.

"I am very happy to have extended my contract at this great club," Davies said. "I came to FC Bayern when I was 18 and just wanted to learn as much as possible every day to become one of the best in my position. Now I'm looking forward to another five years together. I've already achieved a lot here, but there's more to come."

Bayern's sporting director, Christoph Freund, has also expressed his satisfaction with Davies' commitment. "Alphonso Davies has become one of the best players in the world in his position at Bayern and has attracted a lot of interest.

"The fact he wants to continue here with us shows Bayern's status in international football and that Alphonso has found his sporting home in Munich," Freund said.

This announcement follows closely on the heels of goalkeeper Manuel Neuer's contract extension, securing him at Bayern until 2026.

Additionally, German media reports suggest that Bayern are in talks for contract renewals with Jamal Musiala and Joshua Kimmich, both of whom have been linked with moves to the Premier League.

Meanwhile, Real Madrid, who had their eyes set on Davies, faced another blow in their transfer market ambitions. The Spanish giants were unsuccessful in signing Liverpool's Trent Alexander-Arnold during the winter transfer window.

Despite offers, Liverpool, under the guidance of manager Arne Slot, sporting director Richard Hughes, and CEO of football Michael Edwards, stood firm, rejecting any negotiations.

Spanish outlet AS has reported that Real Madrid consider their move for Alexander-Arnold to be "90% done" for a free transfer in the summer, as his current contract with Liverpool is set to expire in just 146 days.

On another front, Real Madrid are monitoring the situation of Nico Paz from Como, with Arsenal and Inter Milan also showing interest, but reportedly at a disadvantage compared to Real Madrid's strategy.

Bayern Munich, currently leading the Bundesliga by six points, are also preparing for a Champions League play-off against Celtic, aiming to continue their domestic and European dominance with their key players now secured for the future.

Alphonso Davies dazzles Bayern with new deal, Real Madrid left reeling