The deal keeps the Spain midfielder at the Etihad Stadium until 2020, which will mark his tenth year at the Club.
In celebration, the City journalists have penned their favourite El Mago moments...
Rob Pollard: Six and the City
For me, the moment that sums up Silva is the half-volley pass for Edin Dzeko in the 6-1 win at Old Trafford.
No player has assisted more goals than Silva since his debut in 2010 and this was his best. The vision he showed to spot the pass was remarkable; the technique to find Dzeko even better.
It was a real stand-out moment of individual brilliance.
David Clayton: Silva bullet
So, you’re asked to pick your favourite Silva moment…
It’s like being asked ‘what’s been your favourite Christmas present of your life?’ or the best meal you’ve ever had… In short, it’s a bit of a lottery and the simple truth is that there are too many to choose from.
However, we have been asked the question and therefore have to choose one of them, so I’ll go for Hull City away in March 2014.
The Blues were going toe-to-toe with Liverpool for the title and faced a Tigers side who were most definitely up for it.
Vincent Kompany was red-carded after just 10 minutes and you started to wonder if the wheels might fall off.
Silva decided otherwise. Just four minutes later during what would be a performance of skill, tireless industry and leadership, he picked up the ball 25 yards out, cut inside from the right and then unleashed a powerful curling shot that gave the keeper no chance as it sailed into the top left-hand corner.
Brilliant. More importantly, it set the 10-man Blues on the way to a priceless 2-0 win and eventually, on to the title two months later.
He doesn’t get that many from distance, so the goal at the KC sticks in the memory…
And my favourite Christmas present – for the record – was the Peter Barnes Trainer. Look it up…
Caroline Oatway: Silva service
It’s almost impossible to select a favourite of so many moments of magic… but I’ve picked a piece of individual brilliance that epitomises the mercurial maestro.
Sergio Aguero may have soaked up the spotlight (and rightly so) with a hat-trick in a 3-0 triumph over Wigan back in September 2011… but El Mago deserves acclaim for the exquisite creation of Kun’s third goal for it was a joy to behold.
Silva collected Aguero’s pass around the centre circle. With three Latics men surrounding him, his route to goal looked to be blocked… but the playmaker rolled the ball back before neatly clipping the ball over the despairing sliding tackles of both Ronnie Stam and Ben Watson.
Having floored two opponents to create the space he craved, Silva then calmly looked up, spotted the run of Aguero and executed the perfect through ball to the Argentine, who of course, finished with aplomb.
The trickery, the vision, the pass, the goal... the one and only David Silva.
John Edwards: Blackpool illumination
Silva’s City career was just three months old when he netted against Blackpool, a strike which confirmed the sense of optimism surrounding his summer arrival was not misplaced.
He changed the game that day and had already set Carlos Tevez up when he conjured up a moment of magic, which has been the trademark of his seven and a half season stay at the Etihad.
Twice he dropped his shoulder to slalom past two Blackpool defenders, before curling a precise finish into the bottom corner with the left foot that has produced so many fine moments.
It was everything we’ve come to expect from Silva, as he displayed the speed of thought, nimble footwork and superb technique that have made him one of the Premier League’s finest midfielders.
And as usual, he made it looked effortless.
Paul Handler: Terrific touch
This wasn’t a great goal or an assist, just a wonderful piece of skill to be enjoyed for the sake of it.
In last season's victory at Bournemouth, not only did he display a brilliant touch to take a high ball down from the night sky but with a the merest drop of his shoulder, he simultaneously wrong-footed his marker before striding into space.
He’s been a joy to watch ever since he arrived in 2010.
Long may it continue...