That's according to Italian transfer expert Nicolo Schira, who says negotiations are already underway.
Guardiola's current deal runs to 2021 and Schira is reporting talks are centred on extending that by 12 months to 2022.
However, just this week chairman Khaldoon al-Mubarak played down the prospect of discussing new terms with Guardiola.
He stated: "The conversations we have with Pep are natural. Pep and I have a very clear idea of what is right for the club and what is not. We have a clear view of what we want with the club's future linked to success. It will work out in the best way for me, Pep and the club. I'm very sure of that."