Rekik made two first-team appearances in last season's Capital One Cup.
"It was a very easy decision to make, City is a great club with a great future for me" Rekik told City's website.
"I can develop as a player and a person at this club and that's why I decided to stay.
"I feel at home, it feels like family inside at City, everybody is nice and they all speak to me so it was very easy for me to settle in.
"It definitely gives you a boost in confidence to be given a contract considering that we won the league last year."