The Norweigan made a promise to a fan when he first took over the club in 2020 that he would undress if he won an MLS Cup during his time at the club.
And, after City beat Portland Timbers on penalties in the final on Saturday, Deila followed through on his promise at Providence Park.
He took off his shirt, sock and then trousers in front of the rejoicing fans, before he got down on all fours and started doing push-ups in front of the trophy.
"You have to celebrate victories and today was a big victory," Deila said afterwards.
"I said maybe too much when I got hired here, but I don't regret that. It was a big moment and I will do it again if we keep winning trophies."
Deila has made a habit of undressing in front of a crowd, first doing it when he was the manager of Stromsgodset in the Norwegian first division.
He stripped to his underpants and did push-ups when the team avoided relegation in 2009, before leading them to their first league title in 2013.
The 46-year-old has done well since leaving Celtic in 2016, where he won two Scottish Premiership titles and a League Cup.
He went back to manage in Norway with Valerenga after leaving Scotland, before joining Manchester City's New York feeder club last year.