Schwarzer looked certain to quit Craven Cottage after expressing a desire to join Arsenal, who had more than one bid rejected for him in the summer.

Fulham manager Mark Hughes told a press conference today: "He was obviously very flattered by the interest.

"We're delighted that he's decided to stay here and we can move forward now."

The 38-year-old Australia goalkeeper, whose previous deal expired next summer, has now committed himself to Fulham until the end of the 2011-12 season, with his new deal containing the option of a one-year extension.