Manchester City have reportedly decided to offer Pep Guardiola a new lucrative contract worth in the region of £20m per year.

In 2016, Guardiola penned a three-year deal at the Etihad Stadium and the general consensus was that the Spaniard may not stay in the dugout after 2019.

However, Guardiola has turned City into a dominant force in the Premier League and according to The Mirror, the club's hierarchy are ready to hand the former Barcelona and Bayern Munich coach fresh terms.

The report has suggested that the 46-year-old will be offered a four-year extension which will be worth a total of £80m, making Guardiola the highest-paid manager in world football.

Guardiola has guided City to 17 wins and one draw from their opening 18 games in the top flight this season, with the North-West outfit holding an 11-point lead over neighbours Manchester United.