Makola, 35, joined City on a free transfer in 2019 after seven years at Orlando Pirates and has provided the Cape Town-based side with valuable experience and composure since the retirement of Teko Modise.
The technically gifted playmaker has proven to be a real influence in the dressing room and amongst the club's younger players and has been rewarded ahead of the 2021/22 campaign.
"The club is delighted to have signed a new contract with Mpho Makola. Our midfield general extends his stay until June 2022," the statement read on social media.
Makola has amassed 52 appearances for the Citizens, scoring two goals and registering three assists in the process.