Guardiola's future has become the subject of much speculation, having entered the final 12 months of his Man City contract.
The Catalan coach has been linked with a move into the international game amid reported interest from five-time world champions Brazil.
However, it has been suggested that Guardiola is ready to sign a short-term extension to remain in his role at the Etihad Stadium.
Guardiola set to sign new Man City deal
According to Football Insider, Guardiola is on the verge of signing a new contract to extend his stay with the Premier League champions.
The report claims that a new deal is '99%' done following positive talks between Guardiola and the Man City hierarchy.
Guardiola has reached an agreement in principle to sign a one-year extension to keep him at the club until the summer of 2026.
It now appears to be only a matter of time before Man City make an official announcement to confirm Guardiola's new contract.
Guardiola to reach a decade with Man City
With Guardiola poised to sign a one-year deal, he will extend his stay with the club to 10 years after being appointed in the summer of 2016.
Guardiola has enjoyed significant success with the Citizens, having won six Premier League titles, four EFL Cups, two FA Cups, a Champions League, a UEFA Super Cup and a FIFA Club World Cup.
However, news of a proposed new deal comes at a time when Guardiola is experiencing a difficult period at the Etihad Stadium.
Guardiola has overseen four consecutive defeats for the first time in his managerial career after seeing his side lose to Tottenham Hotspur, Bournemouth, Sporting Lisbon and Brighton & Hove Albion before the international break.
With two of those defeats taking place in the Premier League, Man City currently find themselves five points adrift of Premier League leaders Liverpool.
Guardiola will hope to spark an upturn in fortunes when his side return to action with a Premier League home game against Tottenham Hotspur on November 23.