But the European champion has moved to tie the 25-year-old down until 2017.
Luiz told the club's official website, www.chelseafc.com: "I am very happy to sign a new contract with Chelsea.
"It is a great club and I look forward to winning more trophies here.
"I want to play for a long time at the top level - which is what playing for Chelsea means.
"I love everything about the club and especially the fans, who have made me very welcome and given me great support."
Luiz has become a cult figure at Chelsea since joining it from Benfica in a deal worth around £25 million ($38.78 million) and helped it to UEFA Champions League and FA Cup glory last season.
He has also come under fire for some of his defending, with former Manchester United defender Gary Neville famously comparing him to a player being 'controlled by a 10-year-old on a PlayStation'.
But that did not prevent him from being linked with Barcelona and a new contract will end that speculation for the time being.
This weekend's Premier League game against Stoke City was Luiz's seventh start in Chelsea's eight matches this season in all competitions.
English Premier League
Manchester City goalkeeper Joe Hart has urged the club to move forward ahead of Manuel Pellegrini's arrival at the Etihad Stadium.