Club record signing Aguero joined City from Atletico Madrid in 2011 and wrote his name into the Blues’ history books by scoring the winning goal against QPR that sealed the 2011/12 Premier League title.
The 24-year-old has become a crowd idol during his first two seasons at the Etihad Stadium and has scored 47 goals from just 69 starts for City.
Speaking recently, Sergio said: “I’m very happy at City and I feel very appreciated. It’s been barely two years since I’ve arrived and sometimes I feel like I’ve been here for all my life.
“I have a fantastic relationship with the fans, and that always reminds me of our title and that goal against QPR. I can never forget that moment.
“Now I am looking forward to next season and pushing hard to win the title again.”
News of Aguero’s contract extension follows recent new deals for Gael Clichy, Yaya Toure and David Silva and provides another big boost ahead of the summer’s preparations for the 2013/14 season.