The Argentine forward had been linked with a move to Spanish giants Real Madrid, but his new deal will run until 2017.
“I’m very happy at City and I feel very appreciated. It’s been barely two years since I’ve arrived and sometimes I feel like I’ve been here for all my life.
“I have a fantastic relationship with the fans. I can never forget that moment. I am looking forward to next season and pushing hard to win the title again.”
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.