Work is already under way on a 6,000-seat expansion to the South Stand, and the latest initiative will see three rows of seats added at pitchside level.
Both projects are due for completion in time for the start of the 2015/16 season.
Tom Glick, City's chief commercial officer, said on the club's website: "We have always been committed to bringing fans closer to Manchester City, to the players and to the pitch.
"Whether that's through digital innovation, community work, international tours, or as in this case, physically allowing fans to be right next to the action, it is our top priority. We are already looking forward to seeing the expanded stadium in action for the 15/16 season."
City also have planning permission for a third expansion which would add 6,000 further seats if undertaken.