The 22-year-old was also being chased by Italian giants Juventus.
When asked about Manchester City, Jovetic told Gazzetta dello Sport: "I stopped those negotiations.
"When Manchester City came forward with strength, I had already decided to stay in Florence.
"Am I happy to still be here? Absolutely and I have no regrets.
"The objective here is to get back into Europe and I won't leave here until this club is competing at the levels it should be."
"I never felt a long way away from Fiorentina, but I did feel that my future was in the balance," he added.
"When so many rumours are flying around, there is always a touch of truth in it.
"I spoke to President Della Valle and he convinced me to stay, but we set off from a good base as I already knew that I would remain.
"Juventus did come after me with some insistence and it is normal to think about it when you hear certain things - the chance to play in the Champions League, you have the faith of the club and the fact that you will be placed at the centre of a project.
"However, there was no reason to go to Turin for that as I'm already here. I love this city and this club and that is why I could never betray them by going to Juventus."