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Iceland's Euro 2016 midfielder Gylfi Sigurdsson has signed a new four-year contract with Swansea City.

The 26-year-old playmaker was linked with a £25m move to Everton but ended speculation about his future by signing a new deal with the Swans until 2020.

It is a boost for Swans boss Francesco Guidolin, who has sold three strikers and is expected to lose Wales captain Ashley Williams to Everton this week.

Sigurdsson, who had two years left on his deal, is in his second Swans spell.

He rejoined from Tottenham in July 2014 and was part of the Iceland team which reached the Euro 2016 quarter-finals, scoring one goal.

Chairman Huw Jenkins has already admitted Swansea need "at least two strikers" following the departures of Eder, Alberto Paloschi and Bafetimbi Gomis' loan move to Marseille.

The Welsh club do have Ghana forward Andre Ayew as an attacking option but his future is uncertain as Ayew is regularly linked with a move to Premier League rivals West Ham.

Swans coach Alan Curtis admitted Seville striker Fernando Llorente was one of the players on Swansea's wanted list but the World Cup winner wants to stay in Spain.

Tottenham forward Nacer Chadli and Leonardo Ulloa of Leicester have also been linked to the Liberty Stadium but boss Guidolin has less than two weeks remaining to bolster his forward-line before their Premier League opener at newly-promoted Burnley on 13 August.

But a new deal for Sigurdsson, who was among Swansea's best players last season, scoring 11 goals in 36 appearances, is a timely boost for Swans fans.