Aguero told journalists following City's 3-2 defeat in Madrid on Tuesday night that had the Spanish champions made an attempt to sign him from city rivals Atletico in the summer of 2011 he would have moved to the Bernabeu.
"If Real Madrid had been interested in me, then I would be here," Aguero said. "I had no option but to join City.
"I want to take this opportunity to refute the information where I supposedly said that I would never play for Real Madrid because I played at Atletico. It was published in an English newspaper."
With the comments causing some consternation amongst sections of the City support, Aguero quickly took to Twitter to clarify that he is happy at Etihad Stadium.
"Just to make it clear - I'm very happy to be in @MCFC," he tweeted. "It's the best decision I could have taken.
"I feel comfortable and appreciated in @MCFC - it's a project I feel involved in. We want more titles and we'll get them!"
- Real Madrid