The 23-year old has started both of City's Premier League games so far at right-back, having made his debut in 2005, and has now committed his future to the club.
"Micah [Richards] is delighted to have signed this new deal and secure his future," his agent, Alex Levack, told Skysports.com. "Manchester City is the place he wants to be as it is his home.
"It really is a fantastic achievement that Micah is the only player left at Manchester City who has come through the academy and is a first-team regular.
"Manchester City is an ambitious and exciting club to be at and a club where Micah knows he can achieve all of his ambitions in the game.
"Roberto Mancini has been wonderful with him, as have the fans and everyone at the club, and Micah was only too delighted to commit his future to them."Richards has won 12 England caps, and is approaching 150 Premier League appearances for City. He won the first silverware of his career last season, playing all 90 minutes of the 1-0 win over Stoke City in the FA Cup final.