The 26-year-old forward has taken the Premier League by storm since joining from Rayo Vallecano for just 2million in the summer, scoring 13 top-flight goals so far this term.
His exploits had seen the Spaniard linked with a big-money move away from the Swans, but he has penned a deal to keep him in south Wales until 2016.
He told the official club website: "It was an easy decision for me. I am living a dream here at Swansea."
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