It was reported earlier in the summer that the shot-stopper was to sign a bumper new five-year deal at the Etihad Stadium.
And ahead of Sunday's Community Shield against derby rivals Manchester United, skysports.com understands that Hart has reached an agreement with City.
Previous reports have suggested that City were prepared to treble Hart's wages to ?90,000-a-week in order to give him parity with fellow Englishmen Gareth Barry and James Milner.
The new deal comes as a reward for an excellent past year for the 24-year-old, who ousted Shay Given as City's number one and also became England's first-choice goalkeeper.
Hart kept the most clean sheets in the Premier League last season as City finished third and booked a place in the Champions League.
He also helped Roberto Mancini's team win the FA Cup, beating United in the semi-finals before the final victory over Stoke.
Hart joined City in 2006 in a deal worth an initial ?600,000 from Shrewsbury and he went on to play for Tranmere, Blackpool and Birmingham on loan.
Source: Team Talk
Source: Team Talk