Real Madrid extends Nacho contract

Real Madrid confirmed that defender Nacho Fernandez has agreed to a new four-year contract with the club.

The move confirms the future of the 23-year-old former Real Madrid B-team captain as a fixture in the first team squad for the forthcoming season, reports Xinhua.

It is a reward for an adaptable player who is able to produce solid performances across the back line but who is probably most comfortable playing on the left side of central defence.

Nacho made his first team debut in April 2011 but found chances hard to come by despite making the first team squad on numerous occasions in the second half of the current campaign.

However, he formed part of the successful Spain Under-21 side that was crowned European Champions this summer and the decision to offer him a new deal is in line with an apparent about turn in the club's policy to try and give more opportunities to young Spanish players.

Elsewhere, there is continued activity in the Spanish transfer market with FC Barcelona apparently close to allowing young striker Gerard Deulofeu close to a loan deal with Premier League club Everton, who have also signed Atletico Madrid goalkeeper Joel, who spent the second half of last season with Wigan Athletic.

Atletico are on the verge of signing central defender Martin Demichelis on a free transfer from Malaga. Demichelis would join the recently arrived Spain international David Villa in giving extra experience as Atletico prepare to return to the Champions League next season.

Rayo Vallecano have confirmed the arrival of well-travelled Mexican striker Nery Casillo, who will have the difficult task of replacing the Piti (Granada) and Leo Baptistao (Atletico Madrid) as the club's main goalscorer.

Villarreal have signed former Barcelona, Tottenham and Mallorca forward Geovani Dos Santos on a four-year contract as the club prepares to return to top flight while Sevilla have sealed Colombian striker Carlos Bacca from Bruges and Valladolid have presented fullback Zakaray Bergdich, who becomes the club's third signing this summer.