It had been claimed that the Spaniard would seek pastures new this summer with a number of clubs linked with a move, but Garcia has said that he wants to "retire at Espanyol".
"The club have the intention of renewing my contract and I'll do that, so things aren't strung out any longer. I'm sure it will all be sorted out soon. I love being at this club and hopefully I can retire at Espanyol," the 31-year-old told reporters at a press conference.
Garcia has made two appearances for Spain.