Dias, 24, joined City from Benfica last year and was a mainstay of Pep Guardiola’s defence as he helped the club win the Premier League title and reach the Champions League final.

The Portugal international was named the Premier League Player of the Season as well as England’s Footballer of the Year in a stellar debut campaign.

“Although he only joined us less than a year ago, in that time Ruben has already proved to be such a vital part of our squad,” City’s director of football Txiki Begiristain said in a statement.

“And it tells you everything about his quality and importance to the club that we wanted to recognise his impact with this new contract.”

City are seventh in the standings after three games, three points behind leaders Tottenham Hotspur. They host Leicester City on Sept 11 after the international break.