The Belgium midfielder has been in sensational form this season and has been integral to the Blues’ fantastic campaign so far.
A 2015 signing from Wolfsburg, De Bruyne has made 122 appearances to date, scoring 31 goals.
No player has made more Premier League assists – 38 – since he returned to England and the 26-year-old is widely considered to be one of the finest players in the game.
This season he has played 32 matches in all competitions, scoring eight goals and assisting a further 13.
“I am really happy to have signed this new deal,” De Bruyne told mancity.com.
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“As I’ve said previously, my intention has always been to stay here at City, where I’ve felt at home from day one.
“Not only are we winning – we are playing great football. It’s a pleasure to be a part of and I’m really excited about what we can achieve in the coming years.”
And Director of Football Txiki Begiristain added: “Kevin’s new deal is great news for our Club.
“He has shown this season how important he is to the team and has been integral in everything we’ve done so far.
“We are thrilled he has committed his long-term future to Manchester City.”
De Bruyne’s first season at City saw him win the Capital One Cup, and he played a vital role in City’s run to the Champions League semi-finals. Kevin ended his first campaign with 16 goals from 41 games, establishing a reputation as one of the best creative players in the game.
Last season, under the guidance of Pep Guardiola, he played a more varied role, scoring seven goals and assisting a remarkable 23 for his team-mates.
In total, he has played 122 games for City, scoring 31 goals and assisting 50 in all competitions.
His 10 Premier League assists this season is the joint highest in the division and has been key to City establishing a 12-point lead after 24 matches.
Nicolas Otamendi, Fernandinho and David Silva have all recently penned new contract extensions with the Blues.
Everyone at the Club would like to congratulate Kevin on signing his new deal.
To celebrate KDB’s extension, you can win a signed training top with Cityzens
Shop his product range here