The Brazil international forward has been subject to interest from English Premier League club Liverpool and also Serie A side Roma but now he will reject both with a contract extension all but negociated.
It is believed that the new contract he will receive will see him at the club past 2016 at the very least.
Roma and Liverpool are currently both having issues surrounding the futures of Luis Suarez and also Pablo Osvaldo so a move for Costa was in the pipelines.
The 24 year-old made 46 appearances last season with an impressive 20 goals and also 15 assists to his name over the duration.