The Germany international played a key role for Pep Guardiola’s side in the second half of the season, standing in for the injured Fernandinho as City swept to Premier League, Carabao Cup and FA Cup titles.
Gundogan held talks about renewing his deal in March but negotiations broke down and the 28-year-old’s current deal is set to expire next summer.
However, the midfielder told BILD that he hopes to stay at the Etihad.
“I wanted to focus completely on the games in recent months,” he said.
“I think my form and the results of the last few weeks have shown that this was the right path.
“Now there's enough time to reflect on the situation and re-engage with the club.”
City were knocked out of the Champions League at the quarter-final stage by domestic rivals Tottenham Hotspur but Gundogan is targeting future glory in Europe.
“With the Champions League, it would have been a five-star season,” he said.
“In England, we cleared all titles that were possible, including the title in the best league in the world.
“The exit in Europe was extremely bitter, but that's football. But it would be wrong if we still mourn the Champions League after these great domestic successes.
“Nevertheless, if I can wish for something at club level for my future, it is to win the Champions League. That's my big goal.”
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