David Silva signs a new five-year deal with Manchester City to extend his stay at the Etihad Stadium, as the club looks to ward off potential interest from Real Madrid.

The 26-year-old's representatives have been in negotiations with City throughout the summer over a new deal worth 200,000 pounds for the player.

"I'm very pleased because I've been here for two years now and I feel very happy here at the club, in the city and with all the people," Silva told the club's official website. "So now I'm delighted to be extending my contract and being here really does feel just like home for me."

Silva insisted the champions ambition was a major factor behind his decision to remain at Eastlands, with Roberto Mancini's men now looking for European success.

"We've won the Premier League title and two other trophies too, and the team is growing and we are now aiming at the Champions League and so that also is another reason to want to stay here," he told City's website. "As I said, I feel very comfortable here and I want to try and win trophies like those. These last two years have gone very well and so let's hope that the next five go as well or even better."

Real Madrid, which City will meet in the Champions League on Tuesday, was believed to be keen on bringing Silva to Santiago Bernabeu.