The German player, who has been a major prospect in Pep Guardiola's squad since arriving from Bundesliga outfit Dortmund was excited to have prolonged his stay at the Etihad Stadium.
“I am very happy to have signed the new contract,” Gundogan told mancity.com.
“I have hugely enjoyed the last three years here at City and everyone at the Club has helped make me feel at home from my very first day.
“It’s a privilege to be a part of this team, playing the style of football we do and winning trophies. It's very difficult to do that and I’m delighted to be a part of it.
“I’m really excited about what we can go on to achieve in the next few seasons.”
Praising the qualities of the 28-year-old midfielder was City’s director of football Txiki Begiristain.
“Ilkay’s new deal is more excellent news for our Club.
“He has shown how important he is to the team and has played a huge part in everything that we have achieved so far.
“We are thrilled he has committed his long-term future to Manchester City.”
Gundogan was an integral figure when City won a domestic treble last term, featuring thirty-one times with 6 goals and three assists in the Premier League as City pipped Liverpool by just a point to the Premier League title.
Man City recruited Gundogan from Borussia Dortmund in 2016 for a fee of £20 million, signing a four-year contract with the Premier League reigning champions.
