Manchester City have locked down one of their most valuable defensive assets. Josko Gvardiol has agreed to a contract extension that will keep him at the Etihad Stadium until 2031, a deal that effectively doubles his original commitment to the club.

The 24-year-old Croatian international arrived at City from RB Leipzig for $90 million in August 2023, signing a five-year deal at the time. This new extension adds three years to that original agreement, which was set to expire in 2028, and comes on improved financial terms.

From $90 million signing to cornerstone defender

The extension didn’t materialize overnight. Reports from earlier in 2026 suggested City were working on a deal that would run until 2030, with an optional year tacked on to reach 2031. That optional year became a permanent fixture in the final agreement.

Sports journalists Nicolo Schira and Fabrizio Romano had both reported in recent weeks that the deal was essentially done, with only final approval standing between Gvardiol and his new contract. That approval has now come through.

Guardiola himself had publicly urged the defender to stay at the club, a move that carried extra weight given the manager’s typically measured approach to contract negotiations in the press.

The Real Madrid factor

Real Madrid had reportedly shown interest in acquiring Gvardiol. Manchester City, however, maintained a strong negotiating position throughout. Gvardiol still had two years remaining on his existing deal, which meant any buying club would have needed to meet City’s valuation rather than wait for a bargain.

By getting the extension done now, City have effectively removed Gvardiol from the transfer market conversation for the foreseeable future. Any club wanting to pry him away would need to negotiate against a contract that runs for another five years.

Recovery and what comes next

Gvardiol suffered a right tibial fracture earlier in 2026, an injury that sidelined him during a period when City needed all hands on deck. Yet the fact that City pushed ahead with improved terms despite the injury tells you everything about how they view his long-term value.

For context, $90 million made Gvardiol one of the most expensive defenders in football history when he signed in 2023. The deal takes him to age 29 by the time it expires, securing him through the peak years of his career at one of the best-resourced clubs in world football.