The Ivorian international played a key role as Manchester City won their first ever Premier League title last term. But reports in recent weeks have claimed that Toure was considering his future at the Etihad Stadium, and was lining up a summer exit.
The centre-midfielder will commit his long-term future to City though, and is reportedly on the cusp of finalising a new four-year deal worth £220,000-a-week after week-long talks with City officials.
The 29-year-old joined the club in a £24m transfer from Barcelona in July 2010, and he's gone on to become one of the Premier League's most effective midfielders.
Speculation surrounding his future had linked Chelsea with a summer bid for the Ivory Coast star, but it now seems Toure is ready to stay put in Manchester.
The news will be a huge boost to Roberto Mancini, as he looks to shape a squad capable of competing for the Premier League title next season.
The defending champions are not mathematically out of the title race this term, but they currently lie 15 points behind Manchester United with just eight games remaining.
The two clubs face each other in the Manchester derby on Monday at Old Trafford, the scene of last year's watershed 6-1 Manchester City victory.