Kovacic, 17, has already represented his native Croatia at Under-21 level and is widely regarded to be one of the most promising young midfielders in Europe.
Both City and Spurs have been linked with a January move for the talented youngster, but Kovacic himself feels spending another year in his homeland would aid his development.
"I'm still young and in no hurry," Kovacic told Croatian newspaper 24sata.
"I believe that it would be good for me if I would stay at Dinamo for one more year and then go out from Croatia."
Dinamo director of sport Zoran Mamic was also keen to play down any interest in Kovacic, and revealed the club are confident of keeping their prized asset at least until the summer.
"The transfer window is quiet at our club at the moment," Mamic said.
"But nobody knows what the next few days will bring to us.
"The fact is that Manchester City and Tottenham are interested in Mateo Kovacic and they want to buy him right now.
"But even if we would say yes and the deal would go through, he would stay with us until the end of the season."
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