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Houghton, 29, has already led City to four trophies in the three years she’s been at the Club and Cushing believes her new deals sends out a message of intent to the rest of the league.
“We are over the moon that Steph has committed her future to Manchester City,” said Cushing.
“From a team perspective, we are in a transitional phase at the moment. We’ve had three and half years with the current squad and we want to continue to dominate domestically and push on the European stage and Steph is the sort of person and the type of player we want here because since the day she signed for us, she’s been so consistent in her attitude, behaviour and performances.
“We have to build the rest of our squad on players like Steph. She leads by example on the pitch through her performances and she’s only ever wanted to win – something that was evident from her first training session with us.
“Her character off the pitch is exemplary and she reflects everything good about this football club and our supporters. We want to be a team that plays with enthusiasm, passion and heart and Steph exudes all those qualities and more.
“She pushed the team on in our first season and could see the vision and ambition of the Club and it was her drive helped us win that first trophy.
“She bought into the everything we were trying to do and trusted us and we know that by securing her to this team we have the opportunity to push this team on to even bigger and better things.
“We want to win the WSL, FA Cup, Continental Cup and with Steph in our team we have a great chance of pushing on again in the Champions League.
“She’s a fantastic role model for all the younger players in the academy and as I say, we are delighted she will be leading the team for the foreseeable future.”
The USA star, who joined the Club in February ahead of the FA WSL Spring Series, helped the Blues to an FA Cup triumph and the Champions League semi-finals.
The Blues finished the tournament in second place, behind winners Chelsea on goal difference, in what proved to be a hectic period for the Club.