The defender, outstanding last season as City won the Premier League League and Carabao Cup, has committed until the summer of 2026, by which time he will have spent a decade at the club.
He says he has fallen in love with City during his time here, which has seen him win three Premier League titles, an FA Cup and four League Cups, and admits he could not be happier to stay for longer.
“Just pure happiness,” Stones said. “Obviously being here five years and to extend it another five, it is hard to put into words to be honest.
“When you fall in love with a place, the people, the whole club, it is what I have worked for and I am so pleased to be staying here for another five years.
“After all the memories that I have already made, the good times, the people, I feel like it is definitely home. I am absolutely over the moon.
“I have always felt settled. There is always that element that you have to fight for everything. I have said that numerous times and I will continue to do that and give everything for the club.
“It is nice to know that your future is here for another five years and I can keep working and improving to try and bring more successful the club and for me as an individual and more incredible memories that we have already previously had.
“I want more and more and there is no better place to do that.”
Stones is a firm favourite with the City fans thanks to his ball-playing style and the quality he possesses.
And the determination he has shown over the past 18 months to find his best form has cemented their appreciation of him as a character.
He says he feels the love and support of the fans – and admits that connection was a factor in his decision to commit for another five years.
“I think I have said before, it is a love-love relationship. It is difficult when you can’t thank them for the support face to face,” he says.
“It would take a long time, but I can express it in these interviews and over camera. When I am out in the pitch, I try to give them everything and I think you can just sense the relationship that we have.
“It is something that I don’t take for granted at all and again, it is another factor why I love it here and why I feel so at home here. A big thank you to everyone.
“Hopefully we can bring some more success and good memories for everyone.”
The midfielder signed a six-year deal with City on Thursday having spent 19 years at the Midlands club.
Stones, who plays alongside Grealish with England, says he is a fearless talent who will bring a new dimension to City’s attack.
“He’s an incredible footballer,” Stones says. “A raw talent. I think you can see he is a bit fearless in how he plays and very direct.
“We only saw a little bit of him in the Euros, but when he came on everyone was excited to see him and he came on and gave some vital assists at key moments.
“He is a big game player. An incredible person as well. He is coming into one of the best dressing rooms in the world non-football wise, with the characters we have here and he will fit in straight away.
“I am sure he will be looking forward to more success here and hopefully winning some silverware.”