“I’m absolutely delighted to have signed a new deal and it is a very exciting time to be a City player,” he told the club’s website.
“I can’t think of myself being anywhere other than City and it really feels like home. I feel very privileged to be staying here for another five years.”
Hart has established himself as one of the strongest goalkeepers in the Premier League and ousted Irish international Shay Given at City.
Hart paid tribute to his former teammate, who moved to Aston Villa earlier this summer.
“Shay’s influence on me has been massive and being able to work alongside me has brought my game on tremendously,” he said.
“I’ll continue to learn from Shay even though he’s now playing for Villa just by watching him on TV.”