The 'Sky Blues' are basking in their Premier League success which has seen them crowned champions with five games remaining.
City have been the dominant side in England this season and most of that is down to Guardiola, which is why the club are desperate to get their manager to stay on for a further year.
The 47-year-old is reportedly keen on extending his current £15million-a-year contract but wanted to wait until the league had been secured.
Now that is done, negotiations have allegedly begun and a deal is expected to be signed soon.