Luis Figo of Portugal reacts during the All Stars soccer match at Alvalade stadium in Lisbon June 9, 2007.[Reuters]

Former FIFA World Player of the Year Luis Figo has agreed to stay on at Italian champions Inter Milan next season, the Serie A club announced on Sunday.

Luis Figo has confirmed his wish to play another season at Inter Milan and will renew his contract until 30 June 2008," read a statement on Inter's Web site (www.inter.it).

The announcement ended weeks of uncertainty over the future of the 34-year-old Portuguese midfielder.

Figo, who joined Inter from Real Madrid in 2005, was expected to close out his career at Saudi Arabian club Al Ittihad after signing a contract with them in January.

A financial dispute last month, however, resulted in him pulling out of the deal.

Inter's statement added that Figo would have a long-term future at the club even after his playing career finished.

"At the end of next season Luis Figo will put his great experience and professionalism at the disposition of the club to look after international relations," it said.