Fernandinho has signed a one-year contract extension to keep him at Manchester City until 2021.
City had risked losing the Brazilian, whose previous deal was set to expire this summer, on a free transfer at the end of the season.
But they have moved to extend his eight-season stay in Manchester until he is 36 with a lengthier deal.
Fernandinho has made 299 appearances since joining from Shakhtar Donetsk in 2013, mainly in midfield before being converted to a centre-back this season.
He has won three Premier League titles, four League Cups and the FA Cup and has been a key player for Manuel Pellegrini and Pep Guardiola, who wanted him to stay.
"This is the best possible news. I have enjoyed every second of my time at City, Fernandinho said.
"I never expected to build such a meaningful relationship with the club and the fans, but it has happened, and I am grateful every single day.
"Our fans are unbelievable. I am so happy that I will continue to play for them a year longer. I feel their love and passion and it genuinely helps keep me driven.
"My focus now is on making sure we continue to be successful. My time here has been decorated by silverware, but under Pep's guidance we have really accelerated. I want that to carry on for as long as possible."
