Pedersen helped Rovers qualify for next season's Uefa Cup
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Midfielder Morten Gamst Pedersen has signed a new four-year contract which will keep him at Blackburn until 2010.
The 24-year-old Norway international had reportedly been targeted by Manchester United and Tottenham.
"Morten has become a big player for us and I am sure this news will be warmly welcomed by Rovers fans," chairman John Williams told his club's website.
"He has made a major impact here, and it is very good news that he is happy to sign a new deal."
Pedersen joined Rovers from Norwegian side Tromso in 2004.
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