The Blues full-back almost joined Fulham in the January transfer window after a series of break-ins at his home in Hale.
But the move fell through and he insists he has no intention of reviving a transfer in the summer.
"I have three seasons left on my contract and I would like to stay and play as many games as possible in that time," he told the City website.
"Everyone knows the background to the proposed move to Fulham. The police had to be called three times to my house and it spooked my wife. It was really unpleasant and unsettling for a young family. It shook us all up a bit.
"To be honest I have never been unhappy at Manchester City, it was just one of those things. The transfer window coincided with the break-ins and Chris Coleman knows Kevin Keegan and asked about me. It went from there but I am not disappointed that it fell through."
Injury and the continued form of young Stephen Jordan have kept Thatcher out of late but he was given his first start under Stuart Pearce - and his first since February's derby - at Villa last Saturday.
"When Stuart Pearce took over he asked me into his office and asked me how I felt and I told him that I am happy here," added Thatcher, who signed from Leicester for £100,000 last summer.
"Unfortunately I have been injured and got my first few minutes with him as manager against Portsmouth and was then lucky enough to hold on to my place at Villa.
"We have real competition for places at the back and we have shown by the goals that we have conceded that we are no pushover. Stephen Jordan and Nedum Onuoha have both come in and done well, and Sylvain Distin and Richard Dunne have been outstanding all season."