De Bruyne is favourite to scoop the end-of-season awards in England, with his consistently excellent form a major factor in Pep Guardiola's side establishing a 12-point lead at the Premier League summit.
De Bruyne has signed on until 2023 and is pretty happy about his new deal.
He has played 32 matches in all competitions this season, scoring eight goals.
The Belgium worldwide has scored six goals and chipped in with a further 10 assists this season as Guardiola's men go in search of the quadruple. "It's a pleasure to be a part of and I'm really excited about what we can achieve in the coming years".
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The playmaker had previously hinted his desire to ink fresh terms with the club and City's director of football Txiki Begiristain is pleased to have concluded the deal.
De Bruyne has scored 31 goals in 122 games and made 50 assists since joining City for £55million from Wolfsburg in August 2015.
De Bruyne's first season at City saw him win the Capital One Cup, and he played a vital role in City's run to the Champions League semi-finals.
De Bruyne has followed City colleagues David Silva, Nicolas Otamendi and Fernandinho in recently renewing their deals with the club.
De Bruyne's new deal will run until the end of the 2022/23 season, with the Daily Mail reporting that the Belgium worldwide will earn weekly wages of £280,000 ($390,000) plus £70,000 in bonuses.