The Argentine has signed to the end of the season. The deal includes the option for another 12 months.
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Demichelis was keen on the opportunity to try and turn the team around until the end of the season and differed from virtually everyother option Mallorca was considering in that he wasn't demanding at least an additional season beyond the remaining 13 league matches.
Demichelis' contract runs until the end of the season - and extending his stay in Palma for another year is optional.
Mallorca currently sit third from bottom on the LaLiga table.