West Ham's highly-rated midfielder Dimitri Payet has signed a new long-term contract, the Premier League club confirmed on Thursday.

France international Payet was only seven months into a five-year deal with Slaven Bilic's side following his move from Marseille last year.

But the 28-year-old's fine form this season and reports of a potential £38 million (48.5 million euros) bid from an unnamed Chinese club convinced the Hammers to hand him an improved contract that is reportedly the biggest in their history.

The Daily Mail reported the deal is comprised of a £68,000-a-week basic wage, a £25,000-a-week appearance fee, a £1 million signing-on fee, plus other bonuses that could take it to around £125,000-a-week.

"West Ham United are delighted to announce that Dimitri Payet has signed a new long-term contract with the club," a statement on the club's website announced.

"The outstanding France playmaker, who has made a huge impact in claret and blue since arriving from Marseille last summer, has penned a deal until the summer of 2021 and is delighted to have pledged his long-term future to the club."

Bilic had already talked of his desire to keep Payet as an integral part of the squad.

"Both parties have the intention to stay at West Ham. When you are playing like he is playing many clubs are showing interest, but we are going to do everything we can to keep him with us," Bilic said.

"Every player has a price but the good thing is he is happy at West Ham, we are more than happy with him and I hope - and I really think - that he will play with us for a long, long time."

Payet's first appearance as the club's highest paid player will come at Norwich on Saturday as West Ham look to continue the momentum from Tuesday's FA Cup win over Liverpool.