The Spain international made the move to City from Valencia in the summer of 2010 and he has proved to be a key figure for Roberto Mancini. He helped City secured Premier League title glory last season and the club have rewarded him with a deal that ties the forward to the club until 2017.
"I'm very pleased because I've been here for two years now and I feel very happy here at the club, in the city and with all the people," Silva told the club's official website. "So now I'm delighted to be extending my contract and being here really does feel just like home for me."
Silva has made 70 appearance in City colours and his creativity played a huge part in the club beating Manchester United to the title on goal difference. He is currently in Spain with the rest of the Real Madrid squad for a Champions League clash and Silva is looking for European glory.
He said: "We've won the Premier League title and two other trophies too, and the team is growing and we are now aiming at the Champions League and so that also is another reason to want to stay here and try and win it. As I said, I feel very comfortable here and I want to try and win trophies like those."
"These last two years have gone very well and so let's hope that the next five go as well or even better. The fans have always given me their support since I arrived here, and recently they've been wanting me to sign, so hopefully this goes someway to thanking them for the affection they've shown towards me, something which also helped me decide to put pen to paper."
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