Ball has played 14 games for City
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Manchester City left-back Michael Ball has signed a new two-year contract.
The 27-year-old moved to Eastlands from Dutch side PSV Eindhoven in January on a short-term deal.
And discussions over a new contract for the former England international were put on hold following Stuart Pearce's sacking as manager in May.
However, Sven-Goran Eriksson's arrival at City paved the way for the former Everton and Rangers defender to put pen to paper.
Ball won his one England cap in Eriksson's first game in charge against Spain in February 2001.
The Swede told the club's website: "Michael's experienced, having played in Scotland and Holland as well as England, and it's good that he is staying with us as he's going to be very useful.
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"We had to build on what was good here, and there was a lot that was really good, so I'm happy that he's signed and he is happy as well."
Everton sold Ball to Rangers for £6.5m in the summer of 2001, but his career in Glasgow was ruined by a serious knee injury.
PSV signed Ball on a free transfer in 2005, but injuries and lack of form meant he made only a handful of appearances in Holland before accepting an offer to impress at City.
He played 14 games under Pearce, but missed the last match of the season at Tottenham after being banned for a crude challenge on Manchester United's Cristiano Ronaldo.
That three-match suspension means he will miss this season's opening fixtures against West Ham and Derby before returning for the home derby against United.