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The 22-year-old central defender has put pen to paper on a contract that will keep him at the club until the summer of 2011.
Diamond had asked the club for an extra two days to mull over terms on Traitors' Tuesday, when Michael Hart, Barry Nicholson and Chris Clark decided their future lay in the English lower leagues.
And two days later the big man stuck to his word and gave Dons legend and Director of Football Willie Miller his answer.
Speaking at Pittodrie today, Zander said: "There was always ongoing discussions with Aberdeen so despite what people have been reading in the papers, that I was off then I was staying, it's just good to put it to bed that I am staying for the next three-and-a-half years."
And an ecstatic Jimmy Calderwood said: "We are delighted to have Zander on board playing with Aberdeen for another three and a half years.
"He has arguably been our best player this season and he has the qualities within himself to go on and take the capataincy at the club if he keeps performing and keeps learning."
Meanwhile, club officials have started negotiations with Lee Miller over a new contract.
The 24-year-old striker has been offered new terms to stay beyond his current deal which expires in summer.
It is understood that an unnamed English Championship club have made an offer for the in-form striker, but it has been rejected by AFC.
Miller said: "There has been interest in Lee, but I am not going to confirm or deny bids for players."