“Like every City fan, I am delighted that Pep’s journey with Manchester City will continue; allowing his dedication, passion and innovative thinking to continue to shape the landscape of the game,” City chairman Khaldoon Al Mubarak said in a statement.

“His hunger for improvement and success remains insatiable and the direct beneficiaries of that will continue to be our players and coaching staff, the culture of our Club, and the English game at large.”

A source told ESPN that Guardiola’s new deal does not contain a break clause, despite the threat of relegation from the Premier League if City are found guilty of breaching the competition’s financial rules. City are facing 115 charges — which they deny — at a hearing in London that began in September.

The hearing is set to conclude in the coming weeks before the independent commission delivers its verdict next year.