Evans will stay until the end of the season.
Evans, who has yet to feature for City's first team, told Crewe's official website: "I am delighted to stay. I've enjoyed the experience and feel I am developing as a player.
"I've spoken to Manchester City and they know that Crewe is a great club for me to play and develop.
"I am just grateful to Crewe for giving me the opportunity and now we have to build on what we achieved against Sheffield United on Saturday."
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