The club spent £50m to sign the player from Porto in January, and recent rumors suggested he might leave the team.
However, the club is expecting Nico to stay and be part of manager Pep Guardiola's plans for the upcoming season.
Nico is set to return to the Etihad Campus at the end of July to begin preseason training and work towards full fitness.
Despite the return of Rodri to full fitness and the arrivals of new players Rayan Cherki and Tijjani Reinders, Guardiola still sees Nico as a valuable option for his midfield.
