Bayern Munich will officially announce a new long-term contract for Thiago later this week, claims German outlet Bild.
Thiago's previous deal had just over 12 months left to run and there were suggestions Bayern would field offers for the midfielder this summer.
The 29-year-old has consistently been one of the best midfielders in the Bundesliga since joining Bayern from Barcelona in 2013.
Thiago has endured injury problems in that time but Bayern have now successfully moved to secure the midfielder's best remaining years.
Bayern are also still in talks with Manuel Neuer and David Alaba about renewing their contracts as the Bundesliga giants turn their attention to next season.
Despite his ability to pick a pass, Thiago surprisingly has no assists in 22 league appearances for Bayern this season and has registered just 20 key passes.
🔥Thiago Alcantara: Has the best dribble success rate (50+ attempted) in Europe's top five leagues this season (87%)
— WhoScored.com (@WhoScored) May 5, 2020
📝 According to @cfbayern, he has now agreed a new contract with Bayern Munich pic.twitter.com/Aq5L0yV1Xr
However, it is Thiago's dribbling and ability to drive forward without losing the ball that is most notable about his style of play.
In fact, the Spaniard has the best dribble success rate (87%) in Europe's top five leagues this season (50+ attempted).