Shaw, who turned 18 on Friday, has pledged his long-term future to the St Mary's outfit by inking a new five-year deal.
The highly-rated left-back impressed for Southampton last season and his form attracted the interest of a host of the Premier League's big guns.
However, Southampton have managed to fend off any interest by tying down Shaw to a new contract.
Shaw, who has come though Southampton's academy, was delighted to sign the new deal after pledging his future to the club in January
"I'm very pleased to have finally signed it," Shaw told the club's official website. "I committed myself back in January, and I'm glad everything has been sorted out.
"I've been getting a lot of questions about my future, but all of the Saints fans will have known that I committed my future in January.
"I've been here since I was eight and I've loved every single moment of it. I want to stay at this Club, and signing this contract means I'm here for another five years.
Southampton boss Mauricio Pochettino was happy to secure Shaw's future and end speculation of a move away from St Mary's for the talented full-back.
"This news merely confirms what we have known for some time - that Luke sees Southampton as the best place for him to develop," said Pochettino.
"It is very clear that he has a huge future ahead of him, and we are delighted that he shares our vision for his growth over the next few years.
"We hope that Luke's new contract will bring to an end any remaining speculation about his future, and that he can now focus fully on what promises to be an exciting season."