The 26-year-old has netted an impressive 13 goals in 22 Premier League appearances after completing a £2.2m switch to Swansea from Rayo Vallecano in the summer.
One of the signings of the season, Michu’s performances have unsurprisingly prompted speculation of a possible big-money move.
However, the Spaniard has committed his long-term future to Michael Laudrup’s side ahead of the second leg of their Capital One Cup semi-final against Chelsea.
“It was an easy decision for me,” said Michu. “I am living a dream here at Swansea.
“I’m probably enjoying my football more than ever. It’s easy to play with this team and tonight I have the chance to reach the first final of my career.
“I’m really happy here in the city with the people, the club and the fans. Everyone has been so nice to me since I arrived.
“I think the club are happy with me because they have given me a new contract. I am certainly happy with the club.”
He added: “I’m happy here.
“I’ve read and listened to all the speculation, but it doesn’t interest me, and that’s why I’ve signed a new contract.
“I’m enjoying myself too much because the team always tries to play football. All I think about is the next game and helping Swansea be successful. This is my life.”