The Croatia international had attracted reported interest from Real Madrid and Bayern Munich, despite still having two years remaining on his previous agreement. His new deal also contains an option for an additional 12 months.
Gvardiol arrived from RB Leipzig in 2023 in a transfer worth 77 million pounds and has since become a key figure in City's defence.
Across 122 appearances, he has featured both in central defence and at left-back, helping the club secure the Premier League title in 2024.
"As soon as I knew City wanted to renew my contract, I felt straight away it was what I wanted," said the 24-year-old.
"The City fans have been unbelievable with me from day one, and the club provide absolutely everything for players. It's the best club in the world to be at."
The defender's latest contract follows a difficult campaign in which he spent more than four months on the sidelines after suffering a broken leg. He returned to action in May and is now looking to build on that comeback.
Having also represented Croatia at the World Cup, Gvardiol will now focus on cementing his place under new Manchester City manager Enzo Maresca as the club prepares for the upcoming season.
Jack Grealish has dismissed suggestions that he was dropped from Manchester City's pre-season tour, insisting he is still recovering from injury rather than being left out by head coach Enzo Maresca.
Chelsea have completed the signing of defender Maxence Lacroix from Crystal Palace in a deal reported to be worth 52 million pounds.
Newcastle United have decided to amicably part ways with manager Eddie Howe just a few weeks ahead of the upcoming 2026/27 campaign.
Tottenham manager Roberto De Zerbi has made it clear he wants Lucas Bergvall to remain at the club, but insists no player can expect an automatic place in his starting line-up.
