The 26-year-old has been of the signings of the season, scoring 19 goals in all competitions following his £2m move to the Swans from Rayo Vallecano in July.
Michu played a crucial role in helping Michael Laudrup’s side win the League Cup in style against Bradford City at Wembley in February.
Zenit St Petersburg have been linked with a big-money move for the Spaniard at the end of the season, but Michu insists he feels settled at Swansea and does not want to leave the Welsh side.
“In the Premier League, Swansea are the best team for me. It’s like a family in the changing room. It was easy to settle here,” Michu told Swansea’s website.
“The manager is also very important for me. Michael Laudrup has done a great job here and the players really enjoy working for him. He is a great gaffer.
“We are in a strong position in the league and we have won the first title for the club. It is also the first cup I have won. Next season we will have the league, two domestic cups and Europe so it will be an interesting summer of preparations.
“I am very happy here. The supporters are very good to me. It’s great knowing that I will be staying here. They are very pleased with how things are going this season.”