Marca have reported that the Los Che left-back will pen a new five-year deal at the Mestalla.
The 19-year-old is following in the footsteps of fellow attacking-minded full-backs Jordi Alba and Juan Bernat in coming through the ranks at the La Liga outfit.
With Gaya showing potential to be a future international with his instant adaption to senior football, the rumours have been flying that the defender could be off to a bigger club.
The media have been keeping a close eye on the left-back’s contract situation as a result, with contrasting reports in the press over where the Spaniard’s future lies.
However, today Marca have stated that Gaya has signed a new deal with Valencia that will keep him at the Mestalla for a further five years.
To ward off potential suitors, the Spanish newspaper claim that the club have installed a €50 million release clause in the new deal to ensure he stays with Valencia for the foreseeable future.
Arsenal currently have Nacho Monreal and Kieron Gibbs as their options at left-back.