The 26-year-old French midfielder has just over a year to run on his current deal at the Etihad Stadium.
Despite admitting that nothing has been signed yet, Nasri is eager to commit himself to the Premier League title challengers.
"We have just started talks so far. We didn't find any agreement yet. But it should be sorted out," he told French television show Canal Football Club. "I want to stay. I can feel people appreciate me and the coach is trusting me."
Nasri joined City from Arsenal in 2011 for around £25m.