The Spain worldwide has also been in excellent form this season and already has eight assists in the league, topping the Premier League on that statistic.
City lead the Premier League by eight points after 14 games and are through to the last 16 of the Champions League.
"The style of football we are playing is a pleasure to be a part of and I look forward to winning more titles in the years to come".
Silva joined City from Valencia in 2010 and has been one of the most successful players in the history of the club.
Elections en RDC : le Conseil de sécurité ne souhaite plus de report
Il a souligné également la nécessité de tout faire pour que les élections prévues soient organisées dans les conditions requises. En clair, l'ONU ne tolèrera pas le non-respect du calendrier de la Céni .
City director of football Txiki Begiristain said: "We are very pleased with this announcement".
"Not only has David Silva been central to the club's success over recent years, he remains one of the team's key players", he said.
May the next three years be even better than the previous seven.
Speaking ahead of Wednesday's dramatic 2-1 win over Southampton, in which Silva was kept on the bench until the 80th minute as Raheem Sterling scored the victor in an unusually sluggish City display, Guardiola offered warm words of praise to a compatriot he has long admired.
"I like guys who are strong and want to play, but I like more the guys who are not afraid to play all the time - and with David you have that a lot". But in this speed, with the weather and the tough conditions he survived for a long-long time. "What he has done in this club will written in the books for the future".
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