Rúben Dias: City is at the pinnacle of football, I can't imagine playing anywhere else
The Portuguese defender has signed a new deal until 2029, which also includes an option for a further season.
Dias joined City in 2020, with his original contract set to expire in the summer of 2026.
Since his arrival in Pep Guardiola's squad, the Portugal international has made over 200 appearances and won ten trophies.
What Dias said
"I'm extremely happy. City is at the pinnacle of football, competing for trophies, and that's why I want to be here.
The club's ambitions match my own, and that's the best thing a footballer could ask for," the 28-year-old Dias told the club's website, via Sports.
The winner of the Premier League Player of the Season award for 2020/2021 is a crucial part of Guardiola's defence.
City is currently undergoing a squad rebuild, and the quartet of Dias, his compatriot Bernardo Silva, striker Erling Haaland, and midfielder Rodri, who returned from injury, form the leadership group within the 10-time English champions' squad.
"I love Manchester and our fans. I can't even imagine playing anywhere else. My job is to be the best possible support for the team."