British media, Mirror, report that Guardiola, who has just over 12 months left on his current deal signed a new one that will see him stay at the club until 2020.
Pep Guardiola set to become best-paid manager with new £20m-a-year deal
The staggering deal will see Guardiola become the best-paid manager in the world after agreeing a one-year extension when he took his squad to meet owner Sheikh Mansour and chairman Khaldoon Al Mubarek in Abu Dhabi last month.
The Catalan met with City’s chiefs when he took his players to the Middle East for four days of warm weather training last month.
The terms of the deal had already been agreed in Manchester, but Guardiola confirmed to the men who matter that he will be extending his contract.
It is reported that the 47-year-old and his family are settled in Manchester.
The Citizens blew their chance to win the Premier League title when they threw away a two-goal against rivals Manchester United on Saturday.
Guardiola said Manchester City did not take their chances today and that is the reason for their 3-2 loss to Manchester United.
Speaking after the game, Guardiola said:”We created enough chances in the first half. It was over.
“But it’s OK. It was just a shame that we could not do it in front of our fans.”