Mendieta signs new Lazio deal

The Spanish international has just completed a season on loan at Barcelona, but returned to Italy after Barca decided against signing him permanently.

Lazio are in dire financial straits and have had to offer all their players wage cuts to survive.

The 29-year-old has decided to accept the cut of around 40 percent in his wages, and signed a new deal that runs until 2008.

Things had looked bad for the Stadio Olimpico side due to their finances, and a host of top players had seemed likely to leave the capital as a result.

However, boss Roberto Mancini has insisted that Jaap Stam in particular is not going anywhere, and Mendieta's new deal is a further sign of their commitment of building a side to challenge for the title.

A further boost for Lazio comes with the confirmation that striker Bernado Corradi has also signed a new deal until 2008.

The ‚é¼11 million buy from Internazionale is happy to pledge his future to the club as he shares their ambitions of challenging for silverware.

"I am very happy to have signed this agreement," said Corradi. "I will now work to build something at this club."