The Belgian star has decided to stay with the Citizens for another 4 years.
midfielder Kevin De Bruyne has extended his contract with the club until 2025.
De Bruyne, who earns £250,000 a week from the club, will be 34 at the end of his contract, and his good relationship with Pep Guardiola will help him stay with the club.
He, who is the captain of Manchester City in the absence of Fernandinho, showed his importance in the Citizens' squad last night by scoring against Dortmund.
The Belgian star said after the contract extension:
“I could not be happier. Since joining City in 2015, I have felt at home. I love the fans – my family are settled here in Manchester and my own game has developed really well.
“This football club is geared for success. It offers me everything I need to maximise my performance, so signing this contract was a straightforward decision. I am playing the best football of my career and I honestly feel there is more to come.
“Pep and I see football in the same way. Having that relationship with a manager is so important to me because our objectives are totally aligned, and we want the same things.
“My focus now is on ensuring we have a successful end to the current campaign. Our results and performances so far have been excellent, but we need to make sure we end the season with the silverware we deserve.”
The 29-year-old midfielder, who equaled Thierry Henry's record of 20 assists last season, has won two Premier League titles, one FA Cup and four League Cups at City.