Barton has been embroiled in a contract row with the club since handing in a transfer request in January and with just a year left on his previous deal, he was linked with a cut-price move from City this summer with Middlesbrough reportedly leading the chase with a £2.5m bid.
But today the matter was finally put to rest with Barton signing a four-year contract with the Blues that runs until 2010.
The Daily Mirror recently reported incorrectly that Richards had also handed in a transfer request, but today the 18-year-old defender, whose previous deal had 2 years to run, also committed to City until 2010.
"I have always maintained that Joey's future lay with this football club and the player is very happy here," manager Stuart Pearce told the official City website. "This is excellent news.
"Joey is improving as a player and I am sure with continued hard work on his and our part, he can achieve his ambitions at Manchester City."
Barton added that the club's summer signings played a big part in him agreeing a new deal.
"It is great that everything has been sorted out," added the former England Under-21 international. "I am grateful for the support and faith the manager and chairman have shown me by offering this contract. The support I've received from City fans has also been a great boost.
"I am ambitious and so is the club. I said if the club would sign quality players I would commit my future to City. The club has done that and I am a man of my word.
"Since we came back from the break there is a real mood of optimism at the club. I have always given my maximum for this club and I'm looking forward to the new season and helping City challenge at the highest level."
Barton's advisor Willie McKay was reported to be demanding £100k for re-negotiating Barton's contract but City have confirmed he's received nothing.
Club spokesman Paul Tyrrell added: "We are grateful to Willie McKay for confirming that he is unwilling to accept any fee in relation to the role he has played in Joey negotiating this contract. Some advisors may take a different attitude towards contract re-negotiations but Mr McKay clearly has the best interests of Manchester City and Joey at heart."