Aguero, 32, held talks with Pep Guardiola and other members of the club’s hierarchy on Monday afternoon.
City announced later he will depart the Etihad Stadium once his contract expires this summer.
The Argentine is a City legend after his last-minute winner secured their first league title since 1968 on the final day of his debut season in England.
Aguero’s 181 league goals are the highest of any foreign import and he is seven shy of eclipsing third-placed Andrew Cole on the all-time scorers list.
City chairman Khaldoon Al Mubarak revealed that Aguero is to be immortalised at the Etihad Stadium after the club commissioned a statue to mark his achievements.
Al Mubarak told Aguero of those plans over the phone on Monday.
Aguero’s statue will stand alongside those of fellow club greats Vincent Kompany and David Silva, which are currently being constructed.
The trio are viewed as symbolising the strides taken under managers Roberto Mancini, Manuel Pellegrini and Guardiola over the past decade.
‘Sergio’s contribution to Manchester City over the last 10 years cannot be overstated,’ said Al Mubarak.
‘His legend will be indelibly etched into the memories of everyone who loves the club and maybe even in those who simply love football.
Source: Law Game