HITC Sport understands that the 19-year-old has agreed a new four-year deal at Craven Cottage.
Sources close to the deal have confirmed to HITC Sport that French striking starlet Dembele has come to agreement on a new four-year deal at Craven Cottage.
A host of Premier League clubs had been keeping close tabs on the teenager, who joined Fulham from Paris Saint Germain three years ago as a 16-year-old.
Arsenal, West Ham United, Everton and Liverpool were among the teams looking to try and land Dembele, but Fulham have managed to persuade him to sign.
A source told HITC Sport: "The deal is done, and should be signed shortly and everyone at Fulham is delighted."
The news is a huge boost to Fulham, having lost their prized asset Patrick Roberts to Manchester City earlier in the summer.
Dembele is now firmly entrenched in the first-team at Fulham and has already bagged three goals this season.
The Cottagers will be hoping that their reward for convincing a key man to stay put will be a return to Premier League competition in the near future.