The Ivory Coast international has been the subject of exit rumours over the course of the season, with the likes of Real Madrid, Paris Saint-Germain and Anzhi Makhachkala all reported to be keen on signing the player.
Despite the speculation, Toure has revealed that he wants to finish his playing career at the Etihad Stadium.
"This is where I want to be," Toure told the club's official website. "When I first arrived at City every time I went to sleep I would dream about us winning something; now it is about us being the best team in whatever competition we take part in.
"I will never forget how I have been treated here by the fans, the club and the owners and nothing would give me greater pleasure than to finish my career as a Manchester City player.
"I want to continue winning titles and trophies and continue to make history. I have enjoyed all of my time here and can't wait for the next chapter. This is an incredible club to be part of with fans that support a team to the end whatever the circumstances."
The 29-year-old signed for City from Barcelona in 2010.