The 25-year-old came close to joining the Premier League clubs in the summer, but a move could not materialize, and he has now committed his future to the Primeira Liga outfit until 2023.
Fernandes scored 32 goals in all competitions for the Verde e Blancos last season and has already scored nine this term.
Following his contract extension, the former Sampdoria and Udinese player told the Sporting's official website how happy he is to stay in the capital of Portugal, and has vowed to continue wearing the team’s jersey with pride.
"It's a pride for me and a recognition of my work; it's a sign that I'm doing things well,” he said.
"I have been trying my best to do what is best for the club. It is for what I did on the pitch, but also showed that I liked Sporting CP and took pride in representing the club I represent.”
"For me it is, and always will be, a privilege to be here and be able to wear the Sporting CP jersey.”
"You can expect more and better. I promise the same delivery and dedication so we can have more moments of glory as we had last season."
Fernandes’ price tag has jumped from £65 million to a reported £85 million right after signing the new deal.
