Proposition 1
Tag 04Y6, permanent. Cite it as [Bourbaki, Tag 04Y6].
Commutative Algebra, chapter VI, § 10. Extensions of a valuation to a transcendental extension
Let be a field, a valuation on , its order group, a totally ordered group containing and an element of such that the relations imply . Then there exists a unique valuation w on with values in and extending such that . The residue field of w is equal to that of and its order group is the subgroup of .
We show first the uniqueness of w. Let be an element of . Then , which shows that the monomials such that have distinct values for w. It follows that , which shows both the uniqueness of w on (hence also on ) and the fact that the order group of w is . It is further seen that, if , we may write , where and ; every element of can therefore be written in the form
Finally the existence of follows from Lemma 1.
Bourbaki puts the proof directly after the statement, so what is above is the statement and its proof together.