As reported by Goal.com on Tuesday, the 32-year-old accepts that he will likely have to take a pay cut to remain at the Etihad Stadium when negotiations resume in the summer to prolong his stay past June 2014.
"I am happy here and settled," Barry told the press. "I'd like to stay as long as possible.
"Of course, for a player to feel settled, you want to be playing regularly. I have been lucky enough to feature in a lot of games this season. That's why I'm happy to stay.
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"It's not just me, there are others like Carlos [Tevez] and Joleon [Lescott] who have a year left on their contracts."
The City man is still hopeful of breaking back into the England squad if he can maintain his levels of performance for Roberto Mancini's side.
"I've been out of the England squad for nearly a year and, when you've been out for that long, it becomes harder to get back in, especially as I'm 32," he admitted. "I've not heard from Roy Hodgson since the summer.
"I've got to play well to get back in. I've not given up on England. I've been disappointed not to make the squads."
Though the Premier League title appears a long way off, Barry is aiming to seal FA Cup glory against Wigan to make up for their failings elsewhere in 2012-13.
"If we win the FA Cup, we'll probably think we've ended the season on level par," he declared.
"Failing to get out of our Champions League group was the most disappointing thing. This club have players good enough for the Champions League final."