"It'll be a pleasure (to return to England)," the 34-year-old, who also had a successful spell at Tottenham Hotspur, told reporters in Sofia.
Former Bulgaria striker Berbatov joined Monaco in 2014 from Fulham and helped the side reach the Champions League quarter-finals in April.
"I spent a long time in England and I keep very good memories," he said. "Everyone is watching the English championship... the Premier League, and I'll be delighted to return."
Berbatov hit the net nine times in 37 appearances last season as Monaco finished third in the French league.
"Dimitar Berbatov showed all his talent and great professionalism," Monaco's vice president Vadim Vasilyev said in a statement on Tuesday.
"I feel good and I think I still have a lot to give to football," Berbatov said.
Berbatov is Bulgaria's all-time leading scorer with 48 goals but he quit the Balkan country's national team in 2010.
(Reporting by Angel Krasimirov)
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