Alves’ previous deal was due to expire at end of June and Galatasaray had made the Brazilian star an offer according to Lig Tv.
The La Liga giants released a statement confirming that Alves will remain at Camp Nou.
“FC Barcelona announces that Dani Alves has accepted the proposal of the Club for the renewal of his contract, which expires on June 30,” it read.
Galatasaray manager Hamza Hamzaoğlu had confirmed that he was interested in Alves after winning the league and cup double.
“Dani Alves will come at a price but it is something we are interested in,” Hamzaoğlu told TRT.
“He is a great player and would boost the image of the club but we would not want to disrupt the squad harmony in the process.”
The Istanbul giants won the Süper Lig for the 20th time this season and became the first Turkish side to wear four stars on their shirt.
Galatasaray will qualify directly for the Champions League group stages next season.