The Belgium centre-back has established himself as one of the best defenders in the top flight following his move to the Etihad Stadium from Hamburg six years ago and the club confirmed on Wednesday that he has put pen to paper on a new deal that will run until 2019.
Kompany, who lifted the Premier League trophy for the second time in three years in May, follows David Silva, Samir Nasri and Aleksandar Kolarov in signing fresh terms with Manuel Pellegrini's side.
And the 28-year-old had no hesitation in extending his stay at the club.
"When I arrived in 2008, I could never have dreamed that we could achieve what we have over the last six years but, for me, this is just the start of the journey," he told City's official website.
"This team is stronger now than it's ever been; we have competition for places in every position and a dressing room full of exceptional, motivated people who want to continue making history together.
"Lifting two Premier League titles, the FA Cup and the Capital One Cup have been four of the best days of my life but I believe that there are many more of these occasions ahead.
"We have a common goal and so much to look forward to - a family of clubs, the opening of City Football Academy, exciting players coming through our youth system – why would I go anywhere else?"
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