Spanish giants Real Madrid and Barcelona have both been linked with moves for the 26-year-old this summer, but Aguero has put pen to paper on a new deal worth a reported £150k per week.
"There has always been this speculation but I certainly never pay much attention to it," he told the club's official website.
"People hear this stuff flying around and they take it seriously but I can tell the fans and everyone at City to relax, I'm going to be here until I see out my contract.
"Each year, I aim to better the previous one. Last season was incredible but I'm not just satisfied with two Premier League titles, I want more and I can achieve them here alongside my teammates."
The Argentina international struck 17 times in just 20 starts to help Manuel Pellegrini's side win the Premier League last season - his second title since joining the club in 2011.