In one of the most drawn-out transfer sagas of recent times Dembele will ultimately remain with Barca despite interest from a number of Premier League sides.
The Frenchman had become a free agent with his contract at the Camp Nou expiring, but it's now being reported by Mundo Deportivo that a renewal has been agreed.
The 25-year-old winger will sign a two-year deal in Catalunya on a 40 per cent wage reduction compared to his contract that recently ran out.
All that is left is for sporting director Mateu Alemany to 'green light' the deal after the player and the club reached an agreement on terms.
After being solidly linked with a reunion with former Borussia Dortmund coach Thomas Tuchel, speculation was rife about a Serie A move after his agent, Moussa Sissoko was spotted at Inter Milan's training ground.
However, Mundo Deportivo report he was negotiating the move of another client, Dan-Axel Zagadou, with Dembele instead staying put.
The sports daily also claim Barca are 'still fighting' for Raphinha, and are waiting for Leeds to accept their €50million offer.
The deal looks set to come down to player power, with Chelsea reportedly offering more cash for the Brazilian who is desperate for a move to Spain.