Bosnian had been expected to quit the club this summer.
Manchester City front man Edin Dzeko could now stay at Eastlands next season after all, according to reports in the Sun.
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The Bosnia and Herzegovina international had been set to quit the north-west outfit at the end of the previous campaign after growing tired of life at the club under then head coach Roberto Mancini.
However, since the Italian was sacked to be replaced by new boss Manuel Pellegrini, the striker has begun to enjoy life at City once again, especially as the experienced Chilean trainer has included Dzeko far more in his first-team plans so far this season, with the player himself responding by finding the back of the net on 21 occasions in total in just 41 matches in all competitions.
“The manager has brought some new things to the team,” said the 28-year-old in the Daily Mirror. “We are playing aggressive, attacking football and scoring a lot of goals.
“Sergio’s return is great for the team because he is such an important player for us.
“We hope we can see the very best of him in the games that remain.”