Inigo Calderon has agreed a new three-year contract, after the Spanish right-back decided his future lies with the Albion.
Albion boss Gus Poyet had been confident of signing the former Alaves captain at the end of last season - but the deal stalled after interest from Albion's south-coast rivals Southampton.
However Calderon has now put pen-to-paper on the contract originally offered by the Seagulls at the end of last season, but with an added clause which would allow the club to cancel the deal after six months should he not fully recover from his hip injury sustained in April.
He said, "I am pleased everything has been sorted out and that I have now signed a long-term deal with the club.
"I had wanted to talk to Southampton, although my mind was virtually made up. My heart is with Brighton & Hove Albion, I love the city, the fans and the club, and ultimately I did not want to leave.
"However, it was right for me to hear what Southampton had to say, even though I was 99% certain I wanted to sign for Brighton. I am pleased that we have been able to sort everything out and now am looking forward to pre-season.
Calderon, who fast became a fans' favourite, will fly back to his home in Bilbao this afternoon, before linking up with the squad for pre-season training in late June.
"I expect to be fully fit for the new season. Now the aim is to help the club in its ambitions to reach the Championship, and as soon as possible.
"With the new stadium only one year away, the future for Brighton is very exciting and I am delighted to now be part of that."
Manager Poyet said, "Calde is a quality player and was always our first choice right-back, so this is a very good signing for the club."
The Albion boss had suggested Calderon's Albion days were over, when it emerged the right-back had stalled on signing a new contract on offer at the end of last season.
However, Poyet added, "At the time I made the comments at the end of last season we were very disappointed when he decided to talk to Southampton, as we had worked very hard to agree a deal, and it was us that gave him the chance to establish himself in England.
"In recent months we had not wanted to compete with Southampton in terms of the wages they have been offering to players, but this proves it doesn't always come down to money.
"I am delighted Calde has repaid our faith we showed in him and signed his new deal, and as far as I am concerned that is all in the past now.
"He made a big impact in the second half of last season, and will be a major influence for us in the future - and I am sure the fans will welcome this news."
Calderon made 20 appearances for the Seagulls, scoring one goal: a memorable strike in the terrific 2-1 win at Charlton in February.
