The statue will be located outside the Etihad Stadium and the club will also rename a pitch at their City Football Academy training ground in the midfielder’s honour.
Silva is the second City player to be commemorated by a statue outside the Etihad after former captain Vincent Kompany, who left the club last year.
Both Silva and Kompany’s sculptures are currently under construction and are expected to be unveiled in 2021.
The training pitch tribute will also feature a mosaic depicting Silva during City’s infamous 6-1 win over rivals Manchester United at Old Trafford in 2011.
Silva made the last of his 436 appearances for City as a substitute in Saturday’s shock 3-1 Champions League quarter-final defeat to Olympique Lyonnais in Lisbon.
The Spaniard – a World Cup and European Championships winner at international level – claimed four Premier League titles, two FA Cups and five League Cups during his 10 years in Manchester.
Silva was informed of the club’s plans to build a statue in his honour by chairman Khaldoon Al Mubarak after his final Premier League appearance against Norwich City last month.
“David Silva is a transformational player; a quiet leader who has acted quietly and deliberately and inspired everyone around him, from the youngest academy player to his senior team-mates over the past ten years,” Mubarak said.
“He has put a stamp on the team, on this club, its history and even the Premier League as a whole. In doing so he has been instrumental to the beautiful football philosophy you see today. He was the start of it.
“As with Vincent before him, David’s statue will act as a lasting reminder of the wonderful moments that he gave us, not only as an incredible footballer, but as an inspiring ambassador who represented this football club with great dignity at all times.”
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