Savinho, 21, joined from French side Troyes for £30.8m in 2024, playing 48 games in all competitions and scoring three goals.
During the summer, Tottenham had opened talks to sign Savinho, but City sources said they were not looking to sell the player.
The Brazil international has made four appearances this season, scoring in Wednesday’s 2-0 Carabao Cup win at Huddersfield.
Speaking before City’s Premier League game against Burnley on Saturday, boss Pep Guardiola said Savinho will become an important player once he improves on his output.
“For the people up front, it is always about numbers – goals and assists,” he added. “Savinho created a lot last season but in the final third, the final moment he was a little bit too hectic.
“But the moment he learns that, because he is so young, the more he improves, he will be a top-class player because he can play on both sides, he has got the speed and the work ethic.
“Savio will make this step, naturally it will come and he will be a top player for Man City.”
