"Roberto's record speaks for itself, he has clearly secured the love and respect of our fans," said City chairman Khladoon Al Mubarak. "He has done as he promised and delivered silverware and success."
The 48-year-old Mancini was sacked by Italian giants Inter Milan in 2008 and started to work as City manager in 2009. On May 14, 2009 Mancini led City to their first major silverware in 35 years with a 1-0 victory over Stoke in the FA Cup final.
In May 2012, Man City claimed their first league title in 44 years after Sergio Aguero's dramatic late winner against QPR helped City to edge over Man United on goal difference.
However, the ongoing 2012-2013 season saw Man United restored their realm as the Red Devils clinched the league title with four matches to go, while Man City only ranked second on the table and ended their Champions League campaign at the bottom of Group D without a single win.