The 24-year old striker netted 12 Premier League goals this season but endured a frustrating campaign as City failed to retain the title and were beaten finalists in the FA Cup.
Aguero signed a contract extension last week to keep him at the Etihad Stadium until 2017 and he was quick to dismiss the Real link.
"They were only rumours. I have a commitment at Manchester City, which is a great club," the Argentine told the media in his homeland.
"I am happy to be part of a team that is growing up very fast. I am happy in Manchester, two years have gone by and I expect that we can do big things in the next few years.
"You can't win the title every year, but we finished second and played in the FA Cup final. I hope next season we win titles again."
Manuel Pellegrini is the favourite to take over as manager at City following the sacking of Roberto Mancini earlier this month, but Aguero says that the players will support whoever gets the job.
"There are several rumours regarding the new coach but we are on vacations now. When we go back to work, regardless of who is the coach, we are going to work very hard with him and the club."