Toure was one of City's key players last season as Manuel Pellegrini reclaimed the league title overhauling a resurgent Liverpool.
But the midfield force had been linked with a move away from the Etihad Stadium after a series of bizarre claims from his agent.
Dmitry Seluk, who represents the Ivorian, said in May that his client was upset City did not mark his birthday lavishly enough and that its owners forgot it was his birthday.
There also followed Toure's claim that City refused him permission to visit his terminally-ill brother Ibrahim in the weeks before his death.
However, the incidents have seemingly been brushed under the carpet by the 31-year-old, who is determined as ever to win more silverware at City.
"I stayed quiet and at the end of the day it's my decision. I will stay at Man City for as long as possible," he said. "The matter is closed now."
"This year is going to be fantastic. We've got some fantastic players coming in and important players are staying. We have the experience. I'm very happy Samir is staying and we need other players to stay as well and try to build this into a massive club," the Manchester Evening News reported Toure saying.
"If you want to be the best you need to win every trophy that's possible. Last season was quite difficult at first but in the end it was fantastic - two trophies. This year we'll try to do our best, we are looking to do well in the Champions League."
He added City would face a tough time retaining the Premier League crown, saying Chelsea, Arsenal, United, Liverpool and Tottenham Hotspur could mount title challenges.
Toure and City could soon be testing their title credentials with the prospect of facing city rivals United 4,000 miles away in Miami as both top their International Champions Cup groups. The winners will sqaure off in a final in Florida on 4 August.
- Sports & Recreation
- Yaya Toure
- Manchester City
- Manuel Pellegrini