The 28-year-old Bosnia & Herzegovina international, who scored 26 goals last season, was speaking at a press conference ahead of City's International Champions Cup clash with Liverpool in New York on Wednesday.
Dzeko, who arrived at the Etihad in a £27million deal from Wolfsburg in January 2011, is expected to start up front against Liverpool alongside Stevan Jovetic, who scored two of City's goals in Sunday's 5-1 win over AC Milan in Pittsburgh.
He said: "I can only say that I am happy at City and at the moment we are talking about a new contract and we will see what happens, but the main thing is that I am happy at City."
City boss Manuel Pellegrini believes that Liverpool, who finished second to Premier League champions City last season, will again be one of the clubs challenging his side for the title this season.
Pellegrini said: "The pre-season is different than when you are playing for the Premier League.
"Tommorrow is important for us to win, but during the year I think that not only will Liverpool be our major rival but also Chelsea, Manchester United, Arsenal and Tottenham.
"There are a lot of very strong teams that can win the Premier League."
Watch Liverpool v Manchester City live in the International Champions Cup on Sky Sports 1 HD (kick-off 12am BST on Thursday, July 31).