The Italian helped secure the Premier League trophy at City for the first time in 44 years last season, after pipping Manchester rivals United to the post.

Mancini has an impressive win rate of 60 percent at City, and has been rewarded by the club's Abu Dhabi owners. The deal will see the Italian add to his three years in charge and remain at the club until 2017.

City originally discussed a three-year deal with Mancini, but the terms and length of the contract were improved considerably following negotiations with the Italian and his agent.

A club statement read: "Manchester City Football Club today are pleased to announce that a new contract has been agreed with manager Roberto Mancini.

"The deal, which runs until the summer of 2017, follows the club's most successful season in more than four decades, which concluded in the most dramatic of circumstances in the team's thrilling 3-2 win over Queens Park Rangers in May this year."

The contract deal has ended earlier speculation linking Mancini to several Russian clubs.