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The 28-year-old has been linked with a move back to Spain only a year after leaving Sevilla for the Barclays Premier League.
Premier League club and City's rival Tottenham had also been reportedly pursuing the striker.
"I'm very happy and very settled here. I had a difficult end to the season and that's why there has been a lot of talking, but I've been very happy here from the first day I arrived," the Spain international said.
Negredo made an impressive impact at the Etihad Stadium last season and finished the campaign with 23 goals in all competitions.
The last of those strikes, however, came in January after he lost form in the second half of the campaign following a shoulder injury.
That loss in form also cost him a place in the Spain squad for the World Cup in Brazil.
Atletico Madrid was reported to be a possible destination for Negredo following Diego Costa's departure to Stamford Bridge, but it is understood that City is not ready to sell the striker to another team.
Written by Harshit Sharma
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