The Danish goalkeeper is critical of former City boss Sven Goran Eriksson for convincing him to sign his new deal and he hopes current manager Mark Hughes will let him leave.
"I want to leave City - no question," Schmeichel told the Daily Mirror.
"It is heartbreaking every time you don't play and one year sitting on the bench would not be good for my development.
"I have been trying to leave for a while because last season, the week after I signed a contract, I was told I wasn't playing.
"Sven was telling me he wanted me to play and let me develop, and every day he was asking me about my contract situation.
"But as soon as I signed the contract, when I got to the hotel before playing Newcastle away in September, I was told I wasn't playing.
"At the time I was playing and I had a good offer of a good contract, but it might have been a mistake to sign for the four years.
"I've been told there is no chance of me leaving, but I want to play first-team football."