With his deal inside it's final 18 months, it's been suggested Guardiola could leave City at the end of this campaign.
On Friday, ahead of their FA Cup fifth round tie with Newcastle, the Catalan said: "We are not a complete team yet, stable enough to compete at the level we want. That is the reality. But we are in the middle of a process where a lot is changing."
At the same time, Guardiola believes that Manchester City can still be in the fight for titles this season.
"If we can learn faster, nothing is lost. Then we can go into the last month with a chance to win."
But Guardiola is also clear that he sees even greater potential further ahead.
"I'm pretty sure next season will be better," he added.
