The former Barcelona coach doesn't expire until the end of next season, and talks over new terms are expected to take place after the end of the current campaign.
Guardiola remains focused on winning his first piece of silverware since arriving in England and, according to the 'Daily Mail', any negotiations would not be too difficult given his strong relationship with the members of the City board.
Although details of any contract extension have not yet been discussed, reports suggest that the 46-year-old is willing to talk in the summer.
A fresh deal at the Etihad could mean his time in Manchester could eclipse the four years spent in charge of his native Barcelona and the three years at Bayern Munich.
City are ight points clear of rivals Manchester United at the top of the Premier League after just 11 games and they have already qualified for the knockout stages of the Champions League with two group games remaining.
The Catalan coach reportedly earns around £15m per year and is believed to be enjoying life in the North West, living with his family in a city centre apartment.
After a lacklustre campaign last season, the first year of Guardiola's managerial career in which he has failed to win a trophy, he was given significant funding to correct some problem areas during the summer, and he has been encouraged by the way in which his players have responded to his methods this season.
He also hails the likes of the club's 17-year-old sensation, Phil Foden, who is one of England's hottest youth prospects, as one of the things which provides him with enthusiasm as City boss.
Guardiola regularly attended the U18s training sessions last season, and quickly identified the midfielder's potential and he hopes to be able to transform Foden into a first-team regular during his time in Manchester.