"Obviously I will not be looking to play too often and I am also taking one or two sessions which has been exciting and a great learning curve for me," Powell told the club's official website.
"I am going to be a development coach around the first team and also registered as a player so I have got the best of both worlds.
"I want to become a manager in the future and I don't see a better place for me to learn."
Powell made 12 starts in City's last campaign.