Midfielder Mpho Matsi made 52 appearances for the club in the last three seasons.
Matsi committed to a four-year deal that will have him stay with the Mother City club until 2022.
The four-year deal comes after City chairman John Comitis said he would like to tie down key players to long-term contracts to help the team compete for silverware each season.
The 28-year-old is the third member of McCarthy’s squad to sign a long-term contract with the club.
Defenders Edmilson Dove and Taariq Fielies signed four- and five-year contracts, respectively.
✍The club congratulates midfielder Mpho Matsi on signing a new four year contract extending to June 2022!
Mpho has formed an integral part of the City squad over the last 3 seasons, making 52 appearances for the club. #iamCityFC#Matsi2022 pic.twitter.com/1iUdlwEt2G
— Cape Town City FC (@CapeTownCityFC) 12 September 2018