Roberto Mancini has signed a new £37.5million deal with Manchester City - making him the Premier League's highest-paid boss.

Mancini will earn £7.5m-a-year under the terms of the new five-year deal, overtaking rivals Sir Alex Ferguson and Arsene Wenger in the pay stakes.

The City boss, who guided the club to the Premier League title last season - their first for 44 years - has seen his heroics rewarded with the lucrative deal.

City reached agreement with Mancini swiftly following talks, heading off interest in the Italian from the Russian national side.

Mancini, 47, currently on a pre-season training camp with City in Austria, said: "I am delighted to be able to give all of my efforts to Manchester City for a further five years.

"The opportunity which exists to build on our recent success is enormous.

"Manchester City is a fantastic football club, from the owner, chairman, Board and the executive team, through to the players, staff and fans.

"I am very much looking forward to the challenges and excitement ahead."

Although he is now the highest-paid boss in England, Mancini still lags some way behind Jose Mourinho, who earns a whopping £10m-a-year at Real Madrid.

City's interim chief executive John MacBeath said: "Roberto's managerial credentials have been well proven in Europe for many years.

"And in leading a team which has won the FA Cup and an unforgettable Barclays Premier League title in successive seasons, his ability to manage in the English domestic game is also undisputed.

"This new agreement allows Roberto to focus on the challenge of guiding a team which is capable not only of defending the Premier League title, but one which can compete for European honours."

The Premier League rich list

Roberto Mancini (Manchester City) £7.5m-a-year

Arsene Wenger (Arsenal) £7.1m

Alex Ferguson (Manchester United) £6.3m

Andre Villas Boas (Spurs) £5.3m

David Moyes (Everton) £3.5m