The United States goalkeeper joined from Columbus Crew in 2019. Initially loaned to Fortuna Düsseldorf before settling down with the team over the past two seasons.
Last season, Steffen made 12 appearances for the team in all competitions and has been a key player in the Carabao Cup win, with four of them this season.
After penning a contract extension until 2025, the 26-year-old said: “It’s been a wonderful time for me. I am happy to commit my future to Manchester City, which for me is the best team in the world. Have the best team manager and has the best coaching management. It’s an honor to be here and help the team.”
The 26-year-old, who has 24 caps for the US National side and led them to their first ever CONCACAF Nations League triumph in June, says it’d a privilege to be a City player.
“This is a fantastic moment me – I am so happy to be committing my future to Manchester City,” Steffen told mancity.com.
“In my opinion, this is the best team in world football. With the best manager and best coaching setup. It’s a privilege to be here and contribute to this team achieving its targets.
“I feel I learn every day and I have definitely improved as a goalkeeper since coming here. So I contributed to our success last season, which was an amazing experience.
“I want to keep pushing Ederson every single day and take my chances when they arrive.”