The midfielder's current deal was not due to expire until 2021 but City began talks earlier in the season in a bid to to secure his long-term future and he has now signed a new five-year deal.

"I am really happy to have signed this new deal," the 26-year-old said. "As I've said previously, my intention has always been to stay here at City, where I've felt at home from day one.

"Not only are we winning -- we are playing great football. It's a pleasure to be a part of and I'm really excited about what we can achieve in the coming years.

"It was pretty easy [the decision to stay]. Obviously you hear a lot of people talk about other clubs but I think at the moment we are one of the best clubs in the world. The way this club is working as a whole unit is unbelievable. I've never witnessed it in other clubs before like that.

"The project is very good, with a lot of young players coming through so I'm happy to also build with this team."

Kevin De Bruyne celebrates after scoring a goal for Manchester City against Bristol City. Getty

De Bruyne, who joined in a £54 million switch from German club Wolfsburg in 2015, has become a key figure at City and is an early favourite to become the Premier League player of the season.

The Belgium international has helped City to a 12-point lead at the top of the Premier League with six goals and 10 assists, the best in the league this season along with teammate Leroy Sane.

He is set to significantly improve his salary with reports suggesting the new deal could be worth around £260,000-a-week.

Director of Football Txiki Begiristain said: "Kevin's new deal is great news for our club. He has shown this season how important he is to the team and has been integral in everything we've done so far.

"We are thrilled he has committed his long-term future to Manchester City."

Senior City players David Silva, Nicolas Otamendi and Fernandinho have all signed contract extensions in the past week, while sources have told ESPN FC that City have opened talks with striker Gabriel Jesus over an improved deal.