The 36 year-old had been approaching the final few days of his Manchester City deal, with his contract set to expire at the end of June, however the relevant parties have been locked in talks for some time now.
Following optimism and confidence from both sides involved in talks, emerging information on Thursday has now revealed that an agreement has been reached which will see Fernandinho enter his ninth season at the home of the Premier League champions.
This is according to the information of Jack Gaughan of the Mail, who reports that Fernandinho and Manchester City have reached an agreement over a one-year contract extension for the Brazilian midfielder.
Gaughan states that Fernandinho is viewed as an 'invaluable member' of Pep Guardiola's first-team squad at Manchester City - which emphasises the club's insistence on retaining his services beyond the summer.
The expectation is that official confirmation of the contract extension will arrive before Manchester City begin their pre-season training ahead of the new campaign, with Guardiola's side set to meet Barcelona in one fixture.
You can follow us for live updates here: @City_Xtra