The agreement, which was reached following discussions this summer, sees the contract run for two years through to June 2017.
Similar such extension agreements have also been reached with Manuel’s backroom team of Ruben Cousillas, Xabier Mancisidor and Jose Cabello.
Speaking of the news, Ferran Soriano, Chief Executive Officer of Manchester City Football Club said: “We are delighted to reach this agreement with Manuel Pellegrini who has already contributed so much to the development of Manchester City in his first two years with us and we look forward to further progress in the seasons ahead.
“This agreement allows Manuel to focus on the challenge of guiding a team capable of both fighting for domestic titles and competing for European honours.”
Manuel Pellegrini echoed his pleasure, saying: “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.”
