The Argentina international has helped the club to two Premier League titles in three seasons since joining from Atletico Madrid in 2011, resulting in him being linked to Barcelona and Real Madrid in recent weeks.
The 26-year-old told Spanish radio station Cadena Cope: "There's lots of talk about Real Madrid and Barcelona. It's always the same every year.
"But the truth is that I'm going to stay at City. I'm very happy and I'm going to continue there."
Aguero scored 17 goals during the 2013-14 Premier League season.