The attacking midfielder, who starred in the Bundesliga last season, is set to ignore interest from Manuel Pellegrini's side
The Belgium international won the Bundesliga's award for best player of 2014-15 as Wolfsburg achieved a surprise second-place finish behind Bayern Munich.
De Bruyne's standout attacking performances saw him linked with a return to the Premier League, which he left when Chelsea sent him packing to the Volkswagen Arena in January 2014.
Man City had been rumoured to be preparing a bid in excess of £45 million for the 24-year-old and Wolfsburg coach Dieter Hecking had hinted that keeping hold of him would be hard.
But De Bruyne - who is tied to the German club until 2019 - has shut down talk of him leaving the DFB-Pokal holders this summer and pledged to remain in the Bundesliga for at least another campaign.
"I will definitely play for Wolfsburg this season," he told reporters at a Sport Bild award event on Monday.
De Bruyne bagged 16 goals and 28 assists in 51 appearances last season for Wolfsburg, who kicked off their 2015-16 Bundesliga campaign with a 2-1 win over Eintract Frankfurt on Sunday.
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