"My decision was based on the seven extraordinary years here and my desire to again experience a European campaign with a team I am deeply tied to,” the 35-year old midfielder told the club's website.

The 2003 Ballon d'Or winner made a huge impact with the Old Lady since his transfer from Lazio in 2001.

However, he was at the center of controversy lately as he refused to ink a new deal after talks with the bosses have broken down.

Nedved hinted that he might hang up his boots if he fails to reach an agreement.

“This is the best way to begin our plan to strengthen the squad next season,” said the general manager Claude Blanc.

Juventus have secured third spot in the Serie A table and will compete in next season's Champions League.