Pep Guardiola is reportedly set to extend his contract at Manchester City by at least a further year until 2026.

Here, the PA news agency looks at what the news means for the club.

How much of a lift does this give City?

Manchester City manager Pep Guardiola kisses the Premier League trophy
Guardiola has won 18 trophies, including six Premier League titles, with City (Martin Rickett/PA)

If confirmed, this is a major boost for the club in both the short and medium term. Guardiola’s existing deal 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 the time being – and allows to club to plan for the 2025-26 season and potentially beyond with greater certainty.

What are the short-term benefits?

Despite sitting second in the Premier League and being expected to progress in the Champions League, City have been below par this term and their recent results have been poor.

Their run of four successive defeats prior to this month’s international break was the worst of Guardiola’s managerial career.

While injuries have been a factor, the lack of clarity over the manager’s future may have impacted on the players. This removes that ambiguity and allows for greater focus on the job at hand this season.

What about beyond that?

Manchester City director of football Txiki Begiristain in the stand during a game
Txiki Begiristain is standing down as City’s director of football at the end of the season (Mike Egerton/PA)

Changing manager in the summer of 2025 would have been complicated for City. There is already one transition occurring as director of football Txiki Begiristain is replaced by Hugo Viana.

This would have added to the disruption at a time when City have little respite from football as they are also due to compete in the Club World Cup.

While there will never be an ideal time to replace one of the greatest managers in Premier League history, this at least kicks the can down the road to a quieter summer.

What is the impact on squad rebuilding?

Manchester City midfielder Rodri gestures during a game
Current form and injury to midfielder Rodri could prompt City to buy in January (Martin Rickett/PA)

Even though Guardiola’s new deal could give the squad an immediate shot in the arm, there have been signs that some player turnover will be required to enable the team to continue competing.

News Guardiola is staying would undoubtedly strengthen the club’s hand in negotiations and ease Viana’s arrival. City rarely dip into the January market but Rodri’s long-term injury and recent form could force a move.

Beyond the winter, the likes of Kyle Walker, Kevin De Bruyne and Ilkay Gundogan – all 33 or over – will need replacing sooner rather than later.

Does this help the club in their legal battles?

Not directly but it brings rock-solid 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. Punishment could be severe if City, who deny all wrongdoing, are found guilty – with relegation a possibility.

Little is known about how the process will unfold and what the impact of it will be, but Guardiola has strongly defended the club in the past and his loyalty is now beyond question. Some reports have suggested there will be no relegation break clause in the Spaniard’s contract.