The Ivory Coast midfielder had suggested he would leave the club this summer.
“This is where I want to be. When I first arrived at City, every time I went to sleep I would dream about us winning something; now it is about us being the best team in whatever competition we take part in,” said Touré.
“I will never forget how I have been treated here by the fans, the club and the owners, and nothing would give me greater pleasure than to finish my career as a Manchester City player.”
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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.