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The 33-year-old had entered the final year of his previous deal and was linked with a move to Bayern Munich in the summer.
“I’m thrilled to sign a new deal. My future is with Manchester City and that is the best thing for me,” Walker said.
“I’ve enjoyed every single moment of the past six years at this fantastic club. I have an amazing coach, great team-mates and staff and our fans are the best. I feel supported on every single level,” he added.
The right-back joined City when he arrived from Tottenham in a £45m deal in August 2017.
Walker made 39 appearances in all competitions for City last season but did not start in the side’s Champions League final win against Inter Milan.
He also lost his place for a period in the 2022-23 campaign and admitted he was “hurt” by comments made by City boss Pep Guardiola, who said Walker was unable to play in a new defensive system used in the second half of the season as the club completed the Treble of Champions League, Premier League and FA Cup.
But Guardiola said in July he would “fight” to keep Walker after interest from German club Bayern emerged.
Written by: Debby Eselebor
Contract england epl extention FA Cup football KyleWalker man city
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