The 21-year-old had been linked to Tottenham during the summer, with the North London club making two offers that were rejected by City.
Savinho chose to stay with Pep Guardiola's team and has now committed to a six-year deal at the Etihad Stadium.
In a statement, Savinho expressed his excitement about signing the contract, saying it's a "very special feeling" to have the club's faith in him.
He also mentioned that he still has a lot to learn and is eager to continue improving under the guidance of Pep and his coaching staff.
Savinho has been with City since his initial arrival and has felt welcome and supported by the team and fans.
He thanked the club and promised to give his all to help the team achieve further success.