The 20-year-old returned from a five-month loan stint with the New York City after the MLS regular season ends. He is now extending the service to the Etihad Stadium.
Facey said he was happy with the new contract and he wants to do next stage with The Citizens.
"I just want to thank everyone who contributed and be a part in bringing me to the position today," wrote Facey on his official Twitter account.
"I am very happy to sign a new contract with the club that I have defended for 11 years. I was ready to take a step further and excited to open the next round."
Facey played 22 times in MLS with the New York City, with 20 starter at right-back or center-back.
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