Frank Lampard has ended one of English football's longest running transfer sagas by signing a new five-year contract with Chelsea.

The England midfielder had just one year left on his previous agreement and British papers had reported for months that he was considering a move to Italy or Spain because he was unhappy with the offer Chelsea had made him.

Inter Milan was rumoured to be Lampard's most likely destination and it had even been suggested that he would invoke rules recently approved by FIFA to buy out the remainder of his contract and join former Chelsea manager Jose Mourinho at the Italian club.

But the 30-year-old Lampard has decided to extend his seven-year stay with the Blues.

"I see it as my final big contract and I will play out my days at Chelsea," Lampard said.

"I want to finish my career at Chelsea. It is something I've said many times and after signing this contract I am very happy and positive I will finish as a player here."

Even so, it took months for all parties to reach agreement.

Chelsea had reportedly offered Lampard a four-year contract, with the player holding out for a longer deal.

"It has taken a while to get the deal done and there has been a bit of compromise on both sides," Lampard said.

Lampard joined Chelsea from West Ham in 2001 for £11 million ($23.53 million), which was seen to be a huge fee for a player unproven at the highest level.

But he went on to establish himself as the key figure in an expensively assembled midfield, scoring 110 goals in 369 appearances for the Blues.

He won the Premier League with Chelsea in 2005 and 2006, won the FA Cup in 2007, and also lifted the League Cup twice, with only current captain John Terry having won more trophies with the Blues.

Lampard was also England's player of the year in 2004 and 2005, going on to score a total 14 goals in 61 appearances, and his form caused him to be linked to Juventus, Barcelona and Inter Milan.

Chelsea turned down approaches from Inter over the past two months, with new manager Luiz Felipe Scolari keen to incorporate Lampard into his plans for the next few years.

"He is a key player for me and vital to Chelsea's future successes," Scolari said.

"Frank is one of the best professionals I have worked with. Every day he tries to learn something and bring new elements to his game."

AP