The South African had recently expressed his concern that a long-term deal was taking too long to sort out, and he feared the agreement Everton had with Borussia Dortmund would run out before the fee had been agreed.

Pienaar signed on loan in July last year, and Everton had to pay the £2.05million fee before the end of this season or they could have been forced to renegotiate a higher figure.

Boss David Moyes' reaction to those concerns was to pointedly say: "The deal, as far as I am concerned, has been agreed. It seems the problem lies with the agent's fee."

But today Everton have confirmed that Pienaar has signed a three-year deal, keeping him at Goodison Park until July 2011.

Pienaar, 26, has impressed Everton fans with his ball skills and willingness to work hard on the flanks, and he was a key figure in the club's progress to the Carling Cup semi-finals and the last 16 of the UEFA Cup.

With Everton now hanging on to fifth place in the Barclays Premier League, he has scored twice in 35 appearances.

Moyes said: "Steven has done well for us. He is one of the reasons our football has improved. He is a really good football player."

Pienaar was initially a star pupil with Ajax Amsterdam's South African feeder club Ajax Cape Town before moving to Dortmund, where his career stagnated before Everton took him on loan.

Moyes has now got to make a decision on another of his loan players, Manuel Fernandes, who joined the club mid-season from Valencia.

Fernandes' form has been erratic, but the Portuguese playmaker is getting the chance to prove his value in the side at present, due largely to the injuries that have hit Tim Cahill, Mikel Arteta and Leon Osman.

Defender Anthony Gardner, on loan from Spurs, is unlikely to have his deal extended. The former Port Vale player arrived from White Hart Lane carrying an injury and has still to figure in a first-team squad.

Everton could have a fight on their hands to keep veteran midfielder Lee Carsley at the club after this season.

Derby are interested in taking the Republic of Ireland international to Pride Park, where he would be reunited with former Everton skipper Alan Stubbs.

Everton are prepared to offer the 34-year-old another one-year contract extension. But Carsley's family have always been based in the midlands and he may well decide to move nearer home when his current deal expires in the summer.