The 22-year-old has made more than 60 appearances in all competitions for the Stade Geoffroy-Guichard outfit since arriving from Troyes in 2007, and earned caps at both French U19 and U21 level, making 24 outings for the latter.
As a result, Arsenal, Tottenham Hotspur and Everton were all linked with moves for the midfield enforcer during the close-season.
St Etienne sporting director Damien Comolli had admitted earlier this summer that although the club were loathed to let Matuidi go, they may have no choice should a big club make a move for his services.
And the former Gunners scout and Spurs director of football has again conceded that St Etienne's captain will eventually move on to bigger and better things, but only for a very large fee should he agree to extend his contract.
"We never wanted to sell him, he is our captain and a major player for us. He's done well for us last season but we convinced him to stay," he said.
"But I'm not being naive, I know it will be difficult to keep him and know he will end up in England or one of the top clubs in Europe. Whoever comes for him, it will cost them a lot of money."
According to L'Equipe, the club are in talks with Matuidi over a new deal that would tie to him to the French side until summer 2013.
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