Personally, I think he has one eye on the Euros next summer, and the fact he has a reasonable chance of making the starting 11, and definitely the squad. Add in a season of the odd appearance for City and that position would be in danger - and he knows it.
The release clause is still there, it's not gone away, but if he has another 'ever present' (or close to it) season for us and makes the Euros squad and team, then he can probably go next year.