Proposition 2
Tag 04Y7, permanent. Cite it as [Bourbaki, Tag 04Y7].
Commutative Algebra, chapter VI, § 10. Extensions of a valuation to a transcendental extension
Let be a field, a valuation on , its order group and its residue field. There exists a unique valuation on extending such that and the image of in the residue field of is transcendental over . The order group of is equal to that of and its residue field is .
To show the uniqueness of , it will suffice for us to show that, if is a non-zero element of , then
We may divide by an element of and suppose that for all and that one of the is zero. As , then belongs to the ring of ; writing for the canonical image of in , the canonical image of in the residue field is ; as is transcendental over and one of the is non-zero, this image is non-zero, whence
We now show the existence of . The formula (for ) defines a valuation on , by virtue of Lemma 1, and obviously has the same order group as . Then . We show that the canonical image of in the residue field of is transcendental over : if , where for all , then, denoting by , a representative of in the ring of , ; whence for all , hence for all . We show finally that : every element of may be written , where are in , and for all , one of the and one of the being zero; then if and only if ; denoting by the canonical homomorphism of the ring of onto ,
which proves our assertion.
Bourbaki puts the proof directly after the statement, so what is above is the statement and its proof together.