Pep Guardiola has signed a two-year contract extension that will keep him at Manchester City until 2021.
The Catalan was entering the final 12 months of a three-year deal signed when he joined the club in the summer of 2016.
"I am so happy and excited. It's a pleasure to be able to work here," Guardiola said.
"I enjoy working with our players every day and we will try to do our best together in the coming years. As a manager, you have to feel good to be with the players - and I feel good.
"I will focus on the desire of my players to become a better team and every day that's what I will try to do -- to improve on the pitch and improve our players. We have a young squad with an average age of 23 and we want to keep taking steps forward and maintain the levels we've achieved this season."
City's hierarchy had made it a priority to try to convince Guardiola to stay longer after he led them to the Premier League title with 100 points in a record-breaking season for his team.
City chairman, Khaldoon Al Mubarak, said: "We are delighted to announce the extension of Pep's contract through to 2021. In his two seasons with us, he has fostered an incredible spirit within the squad and significantly contributed to our progress both on and off the field. In doing so he has embodied the passion and commitment we all have for the club.
"I am very much looking forward to the continued impact of his work and to fulfilling our shared ambitions in the coming seasons."
Club CEO Ferran Soriano added: "Pep's new contract extension is fantastic news for Manchester City. We have all been privileged to witness how we have played beautiful football, won titles, broken records and reached the incredible mark of 100 Premier League points.
"Pep has shown this style can succeed in the Premier League in a way it has never been done before."
Guardiola has maintained that he will stay at the Etihad Stadium as long as he is happy and has now committed to staying for five years in total.
He spent four years at previous clubs Barcelona and three years with Bayern Munich.