Hart accepted loan switches to Torino and then West Ham last season in his unsuccessful attempt to hang on to his England place for the World Cup.
"I need to go somewhere permanent, I think that's obvious," said Hart after making his first City appearance since August 2016 in the friendly defeat to Borussia Dortmund.
“I did what I did in the previous two seasons because I needed to play to be involved in the World Cup - and look where that got me.
“I'm experienced. I've played at the highest level for a long time and done a lot of things in the game. I need to be an important player at a club and I think that can only happen with a permanent move.
“I've got a year left and I'm not going on loan again because my situation has changed. I need to feel part of something.
“It's difficult when you're on loan, especially when you're not a young player who people may have sympathy for. I'm older and being who I am and what I am, I'm there to be shot at."