Mendieta, who joined the Rome club from Valencia two years ago for a fee of 41 million euros (46 million dollars), has accepted a 40 per cent pay cut to remain with the cash-strapped Serie A outfit.

The decision to extend his contract comes as something of a surprise as Lazio has seemed keen to offload the 30-year-old Spain international.

Mendieta struggled in his first season in Serie A and failed to hold down a regular place in the first team.

He was loaned out to Barcelona last season but the Spanish giants turned down the chance to make the move permanent.

Mendieta rose to fame with his performances for Valencia in their Champions League camapaign in 2000 when they reached the final only to lose to Real Madrid.

He helped Valencia to the final the following year and scored an early penalty against Bayern Munich before the Germans equalised and then won a penalty shoot-out.

Mendieta made his debut for Spain in March 1999 as a substitute in a European championship qualifier against Austria and his first international goal came in the last minute of a 9-0 win against San Marino.