The 33-year-old, linked with a move away during the summer, put pen to paper on a two-year deal until 2026 on Thursday.
“I’m thrilled to sign a new deal," Walker said. "My future is with Manchester City and that is the best thing for me.
“I’ve enjoyed every single moment of the past six years at this fantastic club. I have an amazing coach, great team-mates and staff and our fans are the best. I feel supported on every single level.
“The Treble-winning season is one I will never forget and we’re ready to go again and try to win more trophies. I am delighted to continue at a club that competes for trophies every year and I can’t wait to see what the next few years bring.”
Manchester City director of football Txiki Begiristain described Kyle Walker as "the best right back in the world" upon his contract extension, adding: “He is an outstanding footballer and his speed, strength and experience make him such an important member of our squad."
Asked what made him want to commit further to the club, Walker said: “It's the team. I think that in this team there's something special. Obviously, just coming back after an amazing high of last season in winning the Treble and finally getting the Champions League, which is the one trophy that we didn't have as a as a group and as collectively, I wanted to go and do it again. The lads have got that hunger again to go and achieve something really special again this season, fingers crossed. So I wanted to be a part of it and I didn't want to miss out on that.”