Sigurdsson reportedly had interest from other clubs but has committed to a new deal at Swansea.
In a statement they said that a number of other clubs had shown interest in the Icelandic midfielder, with the Daily Telegraph reporting Everton's interest in a £25 million deal just under a fortnight ago.
Despite the fee offered, it appears that Swansea value their player higher and the 26-year-old seems pretty content with life in South Wales.
This news is likely to please Swansea fans who clearly feel he is a key part of their side.
Last season Sigurdsson found the net on 11 occasions in the Premier League and appeared in all but two of their league games.
Fans seem pretty pleased with the business side of the deal while some are very relieved and happy that he will be donning their colours beyond this transfer window at the very least, while some are even prepared to hand him the captaincy.
Here is a snapshot of the reaction:
Gylfi Sigurdsson confirming his new contract on his Instagram, finally a bit of good news. pic.twitter.com/ynS2ZvhHse— Ryan. (@LoveLiveLaudrup) August 2, 2016
*Breathes sigh of relief*— Jackson (@Jackson_SCFC) August 2, 2016
At least I still have Gylfi Sigurdsson at my club https://t.co/r2cOo8cG91
Sigurdsson signing a new contract means if we are in bottom 5 in January, we can demand £30m, same happened with Bony, good business— Ashley (@Ashley_SCFC) August 2, 2016
Said last night Jack Cork would be a natural replacement as captain... I'd give it to Sigurdsson now though. What a man.— Andrew Harris (@Andrew_Harris91) August 2, 2016