Fernandinho, 36, said he was motivated to sign another deal after losing last season’s Champions League final.
“In my head and my mind, the job is not done yet,” Fernandinho said. “And so that’s why I decided to stay here another year and try to help the team and the club to achieve the goals that they’re looking for. In my point of view, we can do that, there’s still places to improve and to get those targets. And obviously, for me and for my family it’s a pleasure to stay in Manchester for one more year.
“If I can keep doing the same way, leading them inside the pitch, off the pitch, to help them to improve and get better and to perform better during the games, I would be the most happy person there.”
Fernandinho has clocked up 350 appearances for City since arriving from Shakhtar Donetsk in 2013.
He has won 12 major trophies including four Premier League titles.
“Fernandinho’s contribution to Manchester City cannot be overstated,” director of football Txiki Begiristain said.
“He is an outstanding footballer, one of the best in the world in his position, and an exemplary professional.
“Since he arrived in 2013, his attitude and consistency have been exceptional, and he has developed into one of our most influential players.
“He is our captain, our leader and it is a position he has excelled in. There are a number of talented young players in our squad and, therefore, it is vital we have somebody with Fernandinho’s knowledge and experience.
“He remains an important player for us and we are delighted he has committed to another year.”
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