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Stones’ contract with the club was due to expire next summer, but he will now remain at the Etihad Stadium until 2026.
“I love being part of this squad. There are so many quality players here and I know we can continue winning trophies, which is my main focus,” Stones told the club’s website.
“The success we’ve had in the last four years has been incredible. To be a part of it has been a dream come true and I just want to continue winning.”
He was an integral part of manager Pep Guardiola’s squad last season as they reclaimed the league title, forming a strong partnership with Ruben Dias in the heart of the defence.
City will begin their title defence with a trip to Tottenham Hotspur on Aug. 15.