Guidetti has ended speculation about his long term future and signed a new three-year contract with City.
"I feel really happy of course, it's a fantastic football club and to sign a new deal is really, really good," he told City's website.
"I've been here for a long time and Manchester City are the ones who have helped me grow and develop to the player I am today, so I am very grateful for that and I've seen how the club has turned into one of the biggest clubs in the world and it is great to be a part of that.
"It's a very exciting time to be part of the club, we're the champions from last season and City are now looking to be the best in every way and to be part of that and for the club to show that they want me to be a part of that is very nice.
"It's going to be competitive with the players we have here, but who doesn't like being competitive?! If everything was easy it wouldn't be fun! I know I'm going to learn so much from all the great strikers that are here.
"I am only young and if I can train every day with the best strikers in the world then it is going to help me. If I can watch what they do in training, I can try to do the same and improve."