The 32-year-old has spent his career with the Catalan giants, and four years of it were spent playing under Pep Guardiola, who took over at City in the summer.
Iniesta has informed Barcelona that he wants to sign an extension to his current contract, which expires in 2018.
"Guardiola knows what I think, what I want, and my desire is ending my career here, like I've said many times," Iniesta told COPE. "I'm very clear about what I say and what I think, everybody knows it.
"I would love to end my career at Barcelona. I have a contract until 2018. We will have to ask the directors whether they want to extend my contract, but I can only repeat that I want to retire at Barcelona."
Iniesta has won 29 trophies during his career at Barcelona, including eight La Liga titles and four Champions League trophies.