As revealed by Goal.com last week, the 26-year-old's representatives have been in negotiations with City throughout the summer over a new deal worth 200,000 pounds for the player.
And with Spanish giant Real Madrid, which City meets in the Champions League on Tuesday, believed to be keen on bringing Silva to Santiago Bernabeu, the Premier League side has moved to ensure the playmaker joins a number of first-team stars committing their future to the club.
“I’m very pleased because I’ve been here for two years now and I feel very happy here at the club, in the city and with all the people," Silva told the club's official website. "So now I’m delighted to be extending my contract and being here really does feel just like home for me."Silva insisted the champions ambition was a key factor behind his decision to remain at Eastlands, with Roberto Mancini's men now eyeing European success.
“We’ve won the Premier League title and two other trophies too, and the team is growing and we are now aiming at the Champions League and so that also is another reason to want to stay here," he told City's website. "As I said, I feel very comfortable here and I want to try and win trophies like those. These last two years have gone very well and so let’s hope that the next five go as well or even better.