The 22-year-old was touted as a possible target for City boss Roberto Mancini and recent reports have emerged that the Premier League champions are close to agreeing a pre-contract for June next year.
"I stopped those negotiations," Jovetic told Gazzetta dello Sport. "When Manchester City came forward with strength, I had already decided to stay in Florence.
"Am I happy to still be here? Absolutely and I have no regrets. The objective here is to get back into Europe and I won't leave here until this club is competing at the levels it should be."
The forward is also believed to have been a target for Juventus.