Toure has committed his future to the Etihad Stadium for another four years and Barry believes the news will convince other stars to join City.
He said: "When a player like him gets a new deal, it is a lift for everyone. You don't want to see players like that leaving. You want others like him coming in.
"When you can keep players like him for another four years, I am sure there will be others coming in, of the same level, to join him."