Silva has been a driving force in City’s push to retain their English Premier League title this season, and has made 40 appearances in all competitions.
He took his tally to nine goals for the campaign in Tuesday’s 7-0 Champions League victory over Schalke.
The 24-year-old is the fourth player to commit their long-term future to City this season after forward Raheem Sterling, defender Aymeric Laporte and teenage midfielder Phil Foden.
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Silva joined City from French side AS Monaco two years ago in a deal British media reported to be worth 43 million pounds.
(Reporting By Nick Said; Editing by Toby Davis)
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