Dmitri Seluk recently claimed Toure was "90 per cent certain" to leave City at the end of the season, but he has now changed his tune.
Speaking to Sky Sports News on Monday, Seluk said Toure, who had been linked with a move to Inter, would remain at the Etihad Stadium after the club told him that he was "too important to let go."
Toure's 20-goal tally helped City win the Barclays Premier League two years ago, but last season he struggled, scoring half that number.
It seemed certain the Ivory Coast international would leave City when Seluk made his initial declaration a month ago, but it now appears the player will stay and see out the final two years of his contract.
Toure's representative made the headlines a year ago when he said his client was seeking to leave City because the club had failed to honour his 31st birthday sufficiently.
"There is a big possibility Yaya will leave this summer," Seluk said in May 2014.
"He is very upset
What happened at his birthday means the club don't care about him
It was proof."
City boss Manuel Pellegrini has repeatedly stated his desire to hang on to his star midfielder, who moved to the Etihad Stadium from Barcelona in 2010.
The 32-year-old is currently with the City squad in north America on a post-season tour.
Pellegrini's side will take on Toronto FC at BMO Field on May 27, before facing Houston Dynamo 24 hours later.
The final leg of the tour sees City travel to New York on May 30 to attend their sister club New York City FC's game against Houston Dynamo in MLS.
Source : PA