The 23-year-old, whose future has been the subject of intense speculation for months, has committed his future to the club to hand manager Gareth Southgate a huge boost.

News of Downing's decision came just days after chief executive Keith Lamb forecast a resolution within weeks of a wrangle between Boro and the Downing camp.

The player's Agent, Ian Elliott, at one point indicated that he could exercise his right to leave on a free transfer at the end of his old deal, which was due to expire in 2010.

But, ultimately, the Teessiders were able to convince the home-grown star of their ambition - their move to land record signing Afonso Alves last month did their cause little harm - and chairman Steve Gibson got his reward today.

Downing, who is in the squad for Sunday's FA Cup fifth round trip to Sheffield United, said: "This is where I want to be. It's my home-town club, but I told them that I didn't want us to stand still.

"Signing Alves shows how ambitious we are, the fact that the chairman was willing to splash out like that.

"The chairman has proved again just how much he wants this club to go forward.

"To be fair, the chairman and the manager have been spot on about it.

"They have never pressurised me, they have just made it clear that they wanted me to stay.

"My thoughts were that I wanted to stay as long as we are ambitious.

"Ultimately, it is not just about playing for my home-town club, although that's important, but I want to win something, and to do that with Boro would be the best way.

"I know we won the Carling Cup, but I want to be part of it next time."

Downing is perhaps the most high-profile graduate of Boro's hugely productive Academy, but has endured a difficult year or so after falling foul of sections of the fans of both his club and country.

He was left out of England boss Fabio Capello's first squad, but Southgate is confident he can return by redoubling his efforts at the Riverside Stadium.

Southgate said: "He can now just focus on his football and we can focus on improving him even more and trying to get him back into that England squad, which he undoubtedly has the talent to be in.

"We can work with him on the training field even more because we know his future is settled.

"Sometimes you can spend more time on the pitch with them once that's done.

"He is very happy playing his football here. He is one of the first here every morning, in the kit-room having as cup of tea, and he is usually the last off the training ground.

"He is the type of person and type of professional we want at the club, and I am really pleased for him that he has agreed a new contract because it is thoroughly deserved.

"It's a great boost for everybody at the club. I wanted him to stay and I have believed all along that he is very happy here, and this shows that."

Southgate is also hopeful that 21-year-old defender David Wheater, another of the Academy's brightest prospects, will soon follow suit after encouraging contract talks.

He said: "We have had some very positive discussions with David and his family this week and what is clear is that they want to be part of this football club as well in the longer term.

"There are still one or two things to negotiate, but I must say, talking to David's family and his advisors was very refreshing.

"It was one of the rare meetings that you come out of with your faith restored in football and footballers' parents."