The Bosnia striker has penned a long-term deal at the Etihad Stadium, following in the footsteps of team-mates Vincent Kompany, David Silva and Sergio Aguero
Goal revealed on Sunday that Dzeko and Joe Hart would be the next City stars to pen new deals as the Premier League champions continue their summer policy of tying their big-name players to long-term contracts.
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"I knew from the beginning when I started here that I wanted to stay for a long time - I can't see any place better than here.
"I'm settled perfectly to life here, I know my teammates, the club, the team, very well and I feel like I can improve even more.
"Over the last three and a half years we’ve made history together but I feel like we are only at the start of something really special.
"There are still so many objectives and goals that I want to reach from my career in the game and I believe that I am in the perfect place to achieve them all.
"The fans have always shown so much faith in my ability and I feel so much love, both from supporters inside Manchester and from those all over the world."
Dzeko had looked set to leave the club this time last season following the arrivals of Stevan Jovetic and Alvaro Negredo.
But thanks partly injuries to the two new signings and Aguero, particularly in the second half of last season, Dzeko flourished under Pellegrini with goals in three the final four matches which helped to secure the Premier League title.
And with Aguero and Negredo currently struggling with injuries, Dzeko has been forging a partnership with Jovetic during pre-season and opened his competitive account with the opening goal in the 2-0 win against Newcastle on Sunday.