The 24-year-old Argentina international is now contracted to City until 2017, the club confirmed on Saturday.
Aguero recently remarked: "I'm very happy at City and I feel very appreciated. It's been barely two years since I've arrived and sometimes I feel like I've been here for all my life.
"I have a fantastic relationship with the fans, and that always reminds me of our title and that goal against QPR. I can never forget that moment.
"Now I am looking forward to next season and pushing hard to win the title again."