The former Shakhtar Donetsk ace, who City paid £8million for in August 2007, has endured a frustrating campaign at Eastlands.
But after spending much of the season on the substitutes' bench, the Brazilian has played in eight of City's last ten games.
Elano said: "My situation is good, it's improved a lot.
Extremely important"I've played in eight of the last 10 games and that is extremely important. I know have the capability to be a regular at my club and I've been playing well, doing my job and scoring goals.
"It was a question of time."
The midfielder was speaking ahead of Brazil's World Cup qualifier in Ecuador on Sunday when he may line-up against clubmate Felipe Caicedo.
"He's commented that it's the game of their lives because a defeat will make it very difficult it for them to qualify," said Elano.
"But I've already told him that we're going to make it really tough for them."
Despite his problems at City, Elano has kept his place in Dunga's Brazilian squad, where he has scored six goals in 29 appearances since making his debut in 2006.
Very useful"I've never been an outstanding player but I've always been a very useful player for Brazil," he added.
"And when I have a chance to score, I take it, so I've been playing regularly. It's been nearly three years with Brazil and Dunga has given me a good run.
"I've always admired Ronaldinhobut whenever I play for Brazil, I try to do my best and it's worked out which is why Dunga has put me in the team. I think I've deserved my place."