The Premier League outfit have qualified for the knockout stages of the Champions League for the first time ever this season and face Demichelis's former club and current holders Bayern Munich on Tuesday night.
"I think Manuel has shown with Malaga and Villarreal what he can achieve in the Champions League," the defender said in a press conference. "I think now we're on a really good path.
"We're growing with every game and every week and we have a great future ahead of us with Manuel."
You can enjoy live coverage of Bayern Munich against Manchester City on Sports Mole tonight from 6.45pm.