The England defender's current deal expires next summer and he understands that there is a chance he will be allowed to join another club on a free transfer at the end of the season.
"I want to stay and be part of the future," Lescott told reporters. "But I understand there's the business side of it and if it's not to be, I will walk away from the club with my head held high and no regrets.
"Nothing would please me more than to sign an extension. If that negotiation ever happens, I will be there with my pen ready to sign."
City signed Martin Demichelis to increase the competition for places in defence.