The 18-year-old playmaker is now contracted to the Club until 2024.
Foden, a lifelong City fan, has been with the Blues since the age of eight, gradually rising through the junior ranks and Academy teams until he was promoted to the senior team during the 2016/17 campaign when he was named as an unused sub against Celtic.
WATCH: Exclusive Phil Foden CityTV interview
Foden travelled to the US with City for the pre-season tour and impressed in the friendlies against Manchester United and Real Madrid, resulting in boss Pep Guardiola stating: “It’s a long time since I saw something like this. His performance was another level. He’s 17-years-old, he’s a City player, he grew up in the Academy, he loves the Club, he’s a City fan and for us he’s a gift.”
Foden drew national attention in October 2017, scoring twice in the FIFA Under-17 World Cup final against Spain and won the coveted Golden Ball award as England became Under-17s world champions.
“Under Pep and with the players we have here around him, he is in the best place possible to develop as a player.”