Donovan has signed a new four-year deal with the Galaxy - announced at a press conference in Los Angeles today - with the club also revealing they were willing to allow the USA international to leave on a short-term loan deal in the new year.

Premier League club Everton have already admitted holding talks with the Galaxy with a view to taking the 27-year-old to Goodison Park but it is thought the player has several suitors in Europe.

Donovan's new deal will run through the 2013 MLS season and the league's reigning MVP was pleased to be remaining in California.

"I am excited to be able to pledge my future to the Galaxy by signing this new contract," Donovan said.

"I have enjoyed my time with the Galaxy and am committed to helping bring the club another MLS Cup championship.

"I believe in this team and I want to be a part of its bright future. This is a great day for me both personally and professionally and I look forward to many successful years ahead."

Donovan joined the Galaxy just prior to the 2005 season and has gone on to score 64 goals in 121 regular season games with LA, leaving him just six goals shy of Cobi Jones' club record of 70.

"Landon's signing is great news for our fans and our club and is further proof that the Galaxy/AEG are committed to building a team that can compete for the MLS Cup year in and year out," Galaxy general manager and coach Bruce Arena said.

"He is our captain, our leader and the league's MVP and we believe that Landon signing this new contract is a key aspect to bringing the Galaxy further success both on and off the field."