Manuel Pellegrini, who won the double in his debut season as manager of Manchester City, has spoken of his delight about signing a one-year extension.
And speaking to the club’s official website, the Chilean said: "I am proud to manage Manchester City FC and am therefore very pleased to have agreed this contract.
"I have a very good quality group of players and a great team of people to work with on and off the field and at all levels of the Club.
"I am focussed on the coming season and confident that my team and I will respond to the constant support shown to us by everyone including of course our fantastic fans."
Former Malaga and Real Madrid boss Pellegrini became the Citizens manager in June 2013, replacing Roberto Mancini.