Following interest from rival channels, Alan Carr has now confirmed he will stay at Channel 4 for two years in a deal worth £3 million.

Both the BBC and ITV were interested in signing Carr when his contract ran out, with ITV reportedly willing to offer the stand-up comic and presenter a contract for £2m to switch channels. However, it has now been revealed that Channel 4 are so keen to keep him that they have offered £3m to secure his services for another two years.

The deal, which will last between January 2009 and December 2010, will see the continuation of The Sunday Night Project and Alan Carr's Celebrity Ding Dong, with the possibility of other series in the pipeline.

Andrew Newman, head of comedy and entertainment said: "He is one of the funniest men on TV. We look forward to developing his TV career over the next two years while making him an even bigger star."

Carr himself said: "I'm absolutely thrilled to be spending two more glorious years at Channel 4. It's a civil ceremony made in heaven."

Carr's career took off at the Edinburgh Fringe Festival of 2005 when he was spotted by Andrew Newman and recruited to front the new line up of The Friday Night Project along with Justin Lee Collins. Since then he has been constantly in demand, touring the UK as well as making highly memorable live TV appearances on shows like Live at the Apollo and The Royal Variety Show. He has won a British Comedy Award for Best Stand Up in 2007 and in the same year was nominated for a BAFTA and an RTS award for The Friday Night Project.

Carr's agents are Off The Kerb, a company known for arranging big money deals. Other Off The Kerb client's include Jonathan Ross (who has an £18m deal with the BBC), Dara O'Briain and Lee Evans.

Tooth Fairy Live, Carr's best selling 2007 DVD, will be broadcast on Channel 4 as a one hour special on Wednesday 27th August at 10pm. Carr will be releasing his first ever autobiography, Alan Carr - Look Who It Is! on September 29th 2008.