Pellegrini is convinced that the Montenegro striker will come good if he can put his injury problems behind him and warned potential suitors they are wasting their time trying to prise him away from the Etihad Stadium.
Inter Milan are known to be very keen on landing the 24-year-old, who joined City for £22m from Fiorentina in 2013, but his manager believes he will play a much bigger role in the Premier League champions' quest for success in the upcoming campaign.
Pellegrini said: "Stevan is working well with us. He is a very important player for our team. Maybe there are a lot of rumours about his future but Stevan will stay with us here."
At times last season, Jovetic was City's fourth-choice frontman, but he seems certain to get more opportunities this time around with Alvaro Negredo set to miss the first few months due to a broken bone in his foot.