Citizens captain David Silva, Samir Nasri, Aleksandar Kolarov and Yaya Toure, who was linked with a move to Paris Saint-Germain in the summer, have all committed their futures to the club in recent months.
Belgian international Kompany has said that it was an easy decision for him to pen his new deal at the Etihad Stadium and was delighted to see some of his key title-winning teammates follow suit.
"To me the most important thing was not that I signed, but that I saw David Silva, Samir Nasri, Aleksandar Kolarov and Yaya Toure doing the same," he told reporters.
"That was a strong signal. All of those players could play for the top teams in the world, but they have decided to show faith in City and the project at the club.
"Personally, I have a very strong relationship with the club, so the decision to extend my stay was easy. I am looking to the future."
Kompany has made 246 appearances for City since signing from Hamburg for £6m in 2008.