Lahm signs new Bayern deal

"We are very happy that we have been able to sign a long-term extension to the contract of an important player in our team," CEO Karl-Heinz Rummenigge told Bayern's website.

Lahm's current contract runs until June 2012 and Bayern said the 26-year-old right back had agreed to extend for another four years.

Lahm has been with Bayern since 1995, although he spent two seasons on loan with VfB Stuttgart, and has played in their last 78 competitive matches, being substituted only once.

He has 75 caps for Germany and captained the team to third place at the World Cup in the absence of the injured Michael Ballack.

It was the second piece of good news for the German champions on Thursday after coach Louis van Gaal and club president Uli Hoeness put an end to a squabble which started when Hoeness said the Dutchman would not listen to other people's opinions.