Pep Guardiola had agreed on a two-year contract extension that will keep him at the Premier League champions Manchester City until 2025.
Speaking after the renewal, the former Barcelona and Bayern Munich manager said "I cannot be in a better place".
The 51-year-old Spanish tactician has won nine major trophies, including four Premier League titles, since taking charge at City in 2016.
"I am so pleased to be staying at Manchester City for another two years," said Guardiola in a club statement issued on Wednesday.
"I can't say thank you enough to everyone at the club for trusting me. I am happy and comfortable, and I have everything I need to do my job as best as possible."
The Spaniard added: "I know the next chapter of this club will be amazing for the next decade. It happened over the last 10 years, and it will happen in the next 10 years because this club is so stable.
"From day one I felt something special being here. I cannot be in a better place."
City chairman Khaldoon Al Mubarak said: "I am delighted that Pep's journey with Manchester City Football Club will continue.
"He has already contributed so much to the success and fabric of this organisation, and it's exciting to think what might be possible given the energy, hunger and ambition that he clearly still has."
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