Gary Cahill has signed a new three-year contract with Bolton, tying him to the club until 2012.
The 23-year-old excelled at the Reebok Stadium last season following his switch from Aston Villa, and earned a call-up to Fabio Capello's England squad in June as a result.
"Gary is the best young centre-half in the country by an absolute mile," said Bolton boss Gary Megson.
"He's had another great season and I believe it's only a matter of time before he plays for England on a regular basis.
"Not only is he an outstanding footballer, he is a great lad to have around the place and I'm delighted that he sees his future lies with Bolton Wanderers."
Cahill's consistent displays had seen him linked to a number of top clubs during the transfer window.
But Megson believes the 22-year-old can continue to grow at Bolton, who entertain Sunderland on Saturday when the Barclays Premier League resumes.
Megson insists Cahill is a massive influence in the dressing room.
He said: "Not only is Gary an outstanding footballer, he is a great lad to have around the place and I am delighted that he sees his future lies with Bolton."