The Spain forward had ended speculation over a move to England by signing a new contract at the La Liga club.
The Spain International has signed a five-year extension with the La Liga club, tying him to the club till 2020, having had 22 months remaining on his previous deal.
His previous contract reportedly included a £15 million release clause, alerting a number of clubs to his availability. The forward had been previously linked with a move to both Arsenal and Chelsea according to the Mirror, with both clubs said to be monitoring the situation with a view to a move in January.
However, his new contract will likely end any speculation about a move away. Alcacer has made 22 appearances in all competitions this season, scoring eight goals and helping Valencia to surge up the table into fourth in the table.
His international record has also proven equally prolific, with him scoring three goals in five appearances for Spain since his debut in September. Now, the 21-year-old has said he is keen to help guide Valencia back into the Champions League so that they can battle with Europe’s elite once again.
"I am delighted and proud to be continuing at Valencia for five more seasons," he told the club's official website.
"I want to thank the club for the confidence in me that they are showing. The Champions League is the main objective and I personally want to play an important role for the team."