Brazilian forward Vinicius Junior has signed a new contract with Real Madrid that runs until 2027, the Spanish club announced on Tuesday.

"Real Madrid and Vini Jr. have reached an agreement to extend the player's contract, linking him to the club until 30 June 2027," the club said in a statement.

Vinicius, 23, joined Madrid in 2018 from Brazilian club Flamengo and has developed into one of La Liga's standout players, scoring the winning goal in last year's Champions League final against Liverpool.

His existing contract was due to expire at the end of this season. Local media reported an extension had already been agreed last year, but it was only made official on Tuesday.

The club provided no financial details, but Spanish media reported the arrangement includes a one-billion euro ($1.06 billion) release clause -- identical to those inserted into the contract of several Barcelona youngsters.

"At the club of my dreams until 2027 and for more titles together," Vinicius wrote on his Instagram account. "The biggest and best club in the world."

Vinicius finished sixth Monday in this year's Ballon d'Or voting and also received the Socrates award, named after the Brazil icon, in recognition of his humanitarian work.

Signed by Madrid for 45 million euros as a teenager, Vinicius endured a challenging start to his time in the capital -- scoring just 14 goals in his first three years before a breakthrough 2021-22 season.

Playing alongside Karim Benzema, Vinicius struck 22 times and contributed 20 assists during that campaign as Madrid won the Liga title and a record-extending 14th European Cup.

He scored 23 goals last term, adding 21 assists, as Madrid lifted the Copa del Rey for the first time since 2014.

Following the departure of 2022 Ballon d'Or winner Benzema to Saudi Arabia in June, Vinicius has become the main man in Madrid's attack, but he was slowed by a hamstring injury that ruled him out for most of September.

His contract renewal comes a day after he was honoured at the Ballon d'Or ceremony in Paris for his work in the community. His foundation, the Vini Jr Institute, uses technology to educate underprivileged Brazilian children.

"I'm happy to be here for this cause. We work in favelas in Brazil and I'm happy to be able to help the youngest ones," Vinicius said after collecting the Socrates award.

He has also become a leading figure in Spain in the fight against racism after being the victim of racist abuse on various occasions during his time at Madrid.

The latest incident occurred during Saturday's Clasico, a game Madrid won 2-1 away to Barcelona.

A video published by Spanish media appeared to show a home supporter calling Vinicius a "monkey", while an object that looks like a banana skin also appears to be thrown from elsewhere.

Vinicius has 24 Brazil caps and played for his country at the 2022 World Cup.