The striker joined the Premier League side from Atletico Madrid in 2011 and has won four top-flight titles, one FA Cup and five League Cups since moving to Manchester.
Aguero, 32, also became City’s record goalscorer in 2017.
Of his 257 goals for the club, the most important was his injury-time strike against Queens Park Rangers on the final day of the 2011/12 Premier League season, a finish that sealed City’s historic title triumph – their first in 44 years as they edged rivals Man United on goal difference.
The Argentina international has struggled with injury issues in recent seasons, however, and has made just eight appearances in the Premier League so far this term – scoring once – and five in the Champions League – netting twice. He has also made just one appearance in this season’s Carabao Cup, in which Premier League leaders City are due to take on Tottenham in next month’s final.
City Chairman Khaldoon Al Mubarak said a statue of Aguero has been commissioned and will stand alongside those currently in work to honour the 32-year-old’s former team-mates David Silva and Vincent Kompany.
Aguero took to social media in the wake of the announcement, writing: “When a cycle comes to an end, many sensations arise.
“A huge sense of satisfaction and pride remains in me for having played for Manchester City for a whole ten seasons – unusual for a professional player this day and age.
“Ten seasons with major achievements, throughout which I was able to become the top historic scorer and forging an indestructible bond with all those who love this club – people who will always be in my heart.
“I was to join during the reconstruction era of 2011, and with the guidance of the owners and the contributions of many players, we earned a place among the greatest of the world.
“The task to maintain this well-deserved privileged position will remain on others. As for myself, I will continue to give it my utmost for the rest of the season to win more titles and bring more joy to the fans.
“Then, a new stage with new challenges will begin, and I am fully ready to face them with the same passion and professionalism that I have always dedicated to continue competing at the highest level.”
Al Mubarak said: “Sergio’s contribution to Manchester City over the last 10 years cannot be overstated.
“His legend will be indelibly etched into the memories of everyone who loves the Club and maybe even in those who simply love football.
“This is not yet the moment for farewell words and speeches. There is still much to achieve in the remainder of the time we have with Sergio, and we look forward to his contributions to the challenges which lay ahead.
“We look forward to the opportunity to bid Sergio a fitting farewell at the end of the season.”
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