Richard Dunne ended speculation about his future at Manchester City by signing a new four-year contract with the club.

The 28-year-old, whose previous contract expired next summer, had been linked with a number of Premier League clubs, but following talks with Mark Hughes, the Manchester City captain decided to stay until 2012.

"My first priority is, was and always has been to stay at City because I've enjoyed it so much and I feel really settled here," Dunne said. "When Mark Hughes got the job, I think everyone was really pleased and I was thrilled that he seemed to make it a priority to sort my contract out. I'm delighted to be able to stay.

Hughes, who replaced Sven-Goran Eriksson as City manager in June, was pleased to retain one of the club's most consistent performers last season. "I'm delighted with the outcome and Richard is a really important player for us," Hughes said. "It was one of my priorities when I took the job that I made sure that he was one of the players we needed to keep."

Dunne revealed his decision to stay came shortly after Hughes' appointment. "As soon as he did, we started to talk," Dunne said. "It was literally a couple of days and it was all done and dusted. I'm pleased now that it's all been signed and sealed and I can relax a bit more now and concentrate on the season ahead."