"We have just started talks so far. We didn't find any agreement yet. But it should be sorted out," the 26 year old told French television show Canal Football Club.
"I want to stay. I can feel people appreciate me and the coach is trusting me."
Nasri insists he has no regrets about leaving Arsenal for City in the summer of 2011 and explained the motive for his move was to win more honours.
"My departure from Arsenal? When you leave for a club where there is more money, you are supposed to be mercenary," added Nasri.
"I don't want to be disrespectful, but I had a meeting with Arsene Wenger who told me to not be worried, he signed Gervinho and he will get reinforcements.
"I preferred to join City and I won titles and indeed I earn a better living. And why not a second national title in three years?
"I am very happy with my choice."
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