The midfielder returned to England with City after a four-year stint with Spanish giants Real Madrid on a free in August 2003 and his signing was regarded as a coup for Kevin Keegan.
However, the former Liverpool man has been stricken by persistent problems with his back, and this season his Achilles, as has made just 22 Premiership starts for City.
Even when the 33-year-old has been fit, he has not produced anything like his old form and failed to justify his lofty salary.
Therefore, it has been reported, he will not be offered an extension when his contract runs out at the end of this season.