Newcastle have been negotiating with Sparta for some weeks over the Dutch youth international and looked to have beaten off competition from Ajax for his signature.
However, the arrival of new manager Frank Rijkaard has persuaded the youngster to remain in Holland.
"The arrival of Frank Rijkaard has turned the scales for me," revealed Mendes da Silva.
"This is really a dream for me, as I before I did not really see myself staying at Sparta.
"Trainer Willem van Hanegem left, Ali Elkhattabi had already left and there came no reinforcements for the squad.
"Newcastle and Sparta had already reached an agreement, and in principle before now, I had already chosen to move to England.
"I wanted to go further in my career and another season of fighting against relegation didn't appeal, so going to a big club seemed the next logical step.
"However, I'm going to stay with Sparta, for one season, to develop further under Rijkaard's coaching. then maybe I would like to leave for a big club."
Mendes da Silva will now remain at Het Kasteel for at least one more season and the 18-year-old, who has been likened to a young Rijkaard, will surely benefit from the former AC Milan maestro.
Meanwhile, Sparta are giving a trial to Brazilian striker Luiz Firmino Emerson.
MVV have told the 27-year-old that he can leave Maastricht and the former Hamburg and St Pauli ace and earn himself a deal with Sparta.
