The Spaniard is approaching the end of his current deal at the Etihad Stadium, but is now set to sign a contract that will see him remain at the Premier League champions beyond the current campaign.
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Guardiola is now in his seventh season at City having joined the club from Bayern Munich in 2016.
He signed his first extension at the end of his second year after they won the Premier League title with a record breaking total of 100 points, making them the first ever 'Centurions'.
His current deal runs out next summer but the former Barcelona player now looks set to stay at the club for even longer following latest developments.
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According to The Athletic, Guardiola has agreed to sign a new contract at City, which will initially run for a year but also have the option for another season.
He could therefore remain at the club until 2025 taking him to nine years with the reigning champions.
An official announcement is said to be imminent, with City and their manager now laying the foundations for potential further seasons of success.
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Guardiola has been nothing short of a revelation for City, who have dominated English football since his arrival six years ago.
They have won four Premier League titles and four League Cups under his leadership, as well as one FA Cup in 2019.
City also reached the Champions League final for the first time in their history, although they ultimately lost to fellow English giants Chelsea.
Despite an overall impressive start to the season, the Citizens sit second in the Premier League table behind Arsenal, and lost their final game against Brentford before the break for the World Cup.
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