The South American was linked with a host of clubs, namely Lazio and Juventus, but he now seems set for a third campaign with the Stadio Friuli outfit.
Pizarro sees his time with Udinese to continue learning as a player, in a bid to enhance his chances of a move to a bigger Serie A side.
"I know I'll stay here, but I don't consider it as a personal defeat. On the contrary, it's a new chance to keep growing while I wait for a big move," said Pizarro.
"I feel I am an important player here, but I don't consider myself as a leader. The only thing I can say I'm very happy with the trust the coach has always given me."
