The midfielder has recommitted until 2023 in a boost to the Premier League champions a day out from their season opener away to West Ham.
There were fears Germany international Gundogan would leave on a free in 2020 after entering the final 12 months of his previous contract.
Talks over an extension broke down during the second half of last season but Gundogan expressed a willingness to reopen negotiations at the end of City’s treble-winning campaign and an agreement has now been reached.
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