Spanish international will remain at Real Madrid for the 2019-20 season, despite reports linking him with an exit.
The versatile defender has played his entire senior career at the club, and with manager Zinedine Zidane making a number of squad changes this summer, he had been reported to be on his way out of the club.
However according to reports in Marca this weekend, he has decided to stay in the Spanish capital.
Zidane has relied on the 29-year old during his two spells as manager at the Santiago Bernabeu, and he convinced Nacho to sign a contract extension at the end of the 2018-19 season – committing to the club until 2022.
Nacho will not be first choice in central defence, with captain Sergio Ramos returning from a calf injury that ended his 2018-19 campaign prematurely, with Raphael Varane and new signing Eder Militao set to compete to start alongside the 33-year old.