The 24-year-old moved to the Etihad Stadium from Fiorentina last summer, but injuries and illness have restricted the forward to just nine appearances so far this season.
"There was also Real Madrid, but I chose City," the Manchester Evening News quotes Jovetic as saying. "I decided to come here because this is a major project with many players. I should have come here the year before, but I had a nice season with [Vincenzo] Montella and Fiorentina."
Jovetic netted 40 goals in 134 games for the Italian outfit.