Silva was informed of the decision by chairman Khaldoon Al Mubarak in a private conversation after his final Premier League appearance against Norwich last month.
A training pitch with bespoke mosaic will also be dedicated to the Spanish midfielder at the City Football Academy.
Having last year announced a similar plan to celebrate the contribution made by Vincent Kompany, the Club will unveil Silva’s lasting tribute following that of the former Belgian captain. Both sculptures will be unveiled in 2021.
The bespoke mosaic for the City Football Academy pitch has already been completed and immortalises David’s remarkable contribution to the 6-1 defeat of arch-rivals United in 2011. He will receive a duplicate mosaic for his home.
Silva made 436 appearances for the Club and leaves us having won four Premier League titles, two FA Cups, five League Cups and three Community Shields.
He is considered one of the Club’s greatest-ever players having been an integral part in establishing City as one of Europe’s pre-eminent sides.
On Saturday, as he made his final City appearance in our Champions League defeat to Lyon, he became the first player since Paul Power 34 years ago to enter the top 10 on our all-time appearance list.
His 70 appearances in European competition is a Club record.
Reflecting on Silva’s time at the Club, Manchester City Chairman, Khaldoon Al Mubarak, said:
“David Silva is a transformational player; a quiet leader who has acted quietly and deliberately and inspired everyone around him, from the youngest academy player to his senior team-mates over the past ten years.
“He has put a stamp on the team, on this Club, its history and even the Premier League as a whole. In doing so he has been instrumental to the beautiful football philosophy you see today. He was the start of it.
“As with Vincent before him, David’s statue will act as a lasting reminder of the wonderful moments that he gave us, not only as an incredible footballer, but as an inspiring ambassador who represented this Football Club with great dignity at all times.”