MUNICH, Germany : Germany defender Philipp Lahm said Friday conversations with new coach Jurgen Klinsmann had persuaded him to extended his contract at Bundesliga champions Bayern Munich until 2012.

Lahm, 24, was on Friday named in the Germany squad for Euro 2008 next month and ex-Germany coach Klinsmann will take over from Ottmar Hitzfeld as coach of Bayern on July 1.

Contract negotiations between Bayern and Lahm broke down in April, leading to speculation Lahm was heading for Barcelona, but he has now signed on for another four years.

"I am very happy, I had some very useful debates with future coach Jurgen Klinsmann," said Lahm, who has 39 caps and has scored two goals for Germeny.

"I have a feeling some exciting things are coming along and it persuaded me.

"After our success at winning the German Cup and League double, it is now necessary to make an important step towards Europe."

Lahm broke into the first team in 2005 and has made 128 Bundesliga appearances for Bayern.

- AFP /ls