Pep Guardiola is expected to extend his Manchester City contract by at least another year, until 2026.
Here, the PA news agency looks at what the news means for the club.
How much of a boost does this give City?
If confirmed, it will be a major boost for the club in the short and medium term. Guardiola’s existing contract is due to expire next summer and speculation over his position has been rife for months.
This puts an end to that – at least for now – and allows the club to plan for the 2025-2026 season and potentially beyond with greater certainty.
What are the short-term benefits?
Despite sitting second in the Premier League and expected to progress in the Champions League, City have been below average this season and their recent results have been poor.
Their run of four successive defeats before this month’s international break was the worst of Guardiola’s coaching career.
Although injuries were a factor, the lack of clarity over the manager’s future may have had an impact on the players. This removes that ambiguity and allows for more focus on the work at hand this season.
And beyond that?
Changing managers in the summer of 2025 would have been complicated for City. There is already a transition underway as football director Txiki Begiristain is replaced by Hugo Viana.
It would have added to the disruption at a time when City have little respite from football as they also have to compete in the Club World Cup.
While there will never be a perfect time to replace one of the greatest managers in Premier League history, it at least paves the way for a quieter summer.
What is the impact on the team’s reconstruction?
Although Guardiola’s new deal could provide an immediate boost to the team, there are signs that some player turnover will be necessary to allow the team to continue to compete.
News of Guardiola’s stay would undoubtedly strengthen the club’s hand in negotiations and facilitate Viana’s arrival. City rarely dip in the January market, but Rodri’s long-term injury and recent form could force a decision.
Beyond the winter, Kyle Walker, Kevin De Bruyne and Ilkay Gundogan – all aged 33 or over – will need to be replaced sooner rather than later.
Does this help the club in its legal battles?
Not directly, but it brings ironclad stability to one area of the club while another focuses considerable attention elsewhere.
City are currently fighting 115 charges of alleged breaches of Premier League regulations following an investigation into their financial affairs. The punishment could be severe if City, who deny any wrongdoing, are found guilty – with the possibility of relegation.
Little is known about how the process will unfold and what the impact will be, but Guardiola has staunchly defended the club in the past and his loyalty is now unquestionable. Some reports suggest there will be no relegation break clause in the Spaniard’s contract.