The Brazilian was linked with top clubs around Europe after an impressive debut campaign in England.
Chelsea, Tottenham, Real Madrid, and Barcelona were all rumored to have interest in his signature.
Speaking to The Telegraph, he said: “I need regular game-time and really feel that with Forest I’m in the best place for my career.
“Staying here for another season will enable me to mature as a player and eventually become better prepared if the chance ever comes to play at another level one day.
“Of course, I want to eventually play in the Champions League. When I was growing up I’d play video games and play with all those teams.
“Whenever I hear that classic music before the games it moves me, and it would be a dream to play in that competition.
“But I’ve been focusing on my work here 100 per cent and I just want to do my best. Forest is a massive club in its own right and I feel good here.”