The City manager has agreed a two-year contract extension committing him to the club until 2025.
However, the deal will be structured as an initial one-year deal, with both club and manager holding an option for a further season.
This means either party could choose to end it sooner if they wanted. The structure is the same as the contract he signed in November 2020.
Guardiola expressed his happiness at the club and that City is the place to be.
“Would I stay in another place for seven years? No, I don’t think so. It is difficult to find what I have here as a manager.
He added: “To be a manager for a long time you need to be so supported. The results help a lot, that is undeniable. In this world they sack you, they fire you, we know that.”
Pep was appointed as City manager in 2016 and since being appointed he has won a total of 11 trophies.
Notably, four Premier League titles, including one record breaking season in 2017/18 where City amassed 100 points.
Although, the Blues are still yet to win the UEFA Champions League with the closest they’ve come being in 2020/21 where they lost 1-0 to Chelsea.
City went unbeaten in their Champions League group this season and face RB Leipzig in the Round of 16.
The mid-season break to accommodate the ongoing 2022 World Cup was seen as an excellent opportunity for Guardiola and City to discuss their shared future, with an official announcement expected imminently.