The Frenchman has just over a year to run on his current deal at City and the club are keen to tie down the attacking midfielder to a new contract.
The 26-year-old has established himself as a key member of Manuel Pellegrini's side and he has been one of City's star performers this season.
Nasri is confident that a new deal will be sorted out and he has thanked Pellegrini for showing confidence in him.
"We have just started talks so far. We didn't find any agreement yet. But it should be sorted out," Nasri 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 took stock before I went to Manchester City, I was joining a club with Yaya Toure, David Silva, Sergio Aguero, Carlos Tevez.
"I spent three seasons at Arsenal without any title and at the end of the season we sold our best player that was Cesc Fabregas.
"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."