"I've been talking to Sylvain for 18 months about a new contract, he knows full well that I want him here even if it takes us until the last day of his contract to persuade him to stay," Pearce told the City website.
"The main thing that will help him make up his mind are not words from me but performances from the team. I would say that he likes playing football at this club, his family are happy in Manchester and we want to keep him, that's never been debated. We want the likes of Sylvain Distin at this club for years to come.
"I honestly believe that he will stay, but we have to make sure as a team that the results are good, and he is part of that process that will tip the balance for him. It is the same for the likes of Micah, Joey, Richard and all the other players that have stayed wanting to be part of this club."
Distin, who turns 29 this month, almost joined Middlesbrough last summer.
"He spoke to Middlesbrough last summer but then told us that he did not want to go. That's fine, it has given me an extra year to try to convince him to stay," Pearce added.
"I won't try to move him out in January and turn some money over, I would rather keep him here even if the worst case scenario happens, where he leaves for nothing next summer. That's the nature of football with Bosman deals these days, but I'll do everything in my power to make sure he stays."
Meanwhile, Pearce is discussing with the City board what funds he will have available in January, but said: "If anyone we look at is no better than what we already have, then they won't come through the door."
Psycho also highlighted chairman John Wardle's support, adding: "It's very difficult when I go to supporters club meetings and I hear people saying to him, 'put your hand in your pocket' after he has put £20m of his own money in, I do find that slightly unfair.
"If there's money available I know full well that he's doing everything to fund me to strengthen the side. If it's not available, he's honest enough to tell me that."