Not for the first time, Silva had been linked with a summer move away from Manchester City, with Barcelona and Paris Saint Germain credited with strong interests in the Portuguese.
But City manager Pep Guardiola has always been a big admirer of the Benfica academy product and wanted him to stay.
Silva added the UEFA Champions League trophy to his list of laurels at the Etihad Stadium last season. He has won five Premier League titles, two FA Cups, four League Cups and the UEFA Super Cup in his time with the Citizens.
Speaking to the club's official channels on Wednesday, Silva said: “I’ve had six incredible years at Manchester City and I’m delighted to extend my time here. Winning the Treble last season was extremely special and it’s exciting to be part of a squad where there is such a hunger and passion.
“Success makes you want even more, and this Club gives me that opportunity to keep on winning. I love the manager, my team-mates and the fans and hope we can share even more great memories in the coming years.”
City's director of football Txiki Begiristain added: "Bernardo has been exceptional during his time at the Etihad, so we're delighted that he has signed a contract extension.
"His quality and technical ability is fantastic - and alongside his hard work and professionalism he has become one of the best players in the world.
"Bernardo was so important in our Treble-winning season and we are sure he can help deliver even more trophies in the next few years."
The 29-year-old has recorded 308 appearances, 55 goals and 59 assists since joining Man City from AS Monaco in the summer of 2017.
Silva's new deal will expire in the summer of 2026.
