The Sweden forward, who scored 20 goals in 23 appearances on loan at Feyenoord last season, has yet to feature in the English Premier League but is already highly sought after by other clubs.
Manchester City sign in-demand youngster John Guidetti to new deal
Highly-rated Swedish striker John Guidetti has signed a new three-year contract with English Premier League champions Manchester City.
The 20-year-old is yet to feature in the Premier League but boosted his reputation last term after scoring 20 goals in 23 appearances during a loan spell with Feyenoord.
That form led to speculation over his future, with a host of clubs being linked with a move for the Sweden international, but City have moved to tie him to a new deal.
"I feel really happy of course, it's a fantastic football club and to sign a new deal is really, really good," he told the club's website.
"I've been here for a long time and Manchester City are the ones who have helped me grow and develop to the player I am today, so I am very grateful for that.
"I've seen how the club has turned into one of the biggest clubs in the world and it is great to be a part of that."
Guidetti returned to City after suffering illness towards the end of the last campaign and he is still fighting back to full fitness.
He said: "It's going well - I can run, I can shoot, I can pass, so I am definitely getting there, but we have to be a bit more patient and of course I want to get out there every day, it's what I long for."