Bayern Munich manager Pep Guardiola is set to sign a new deal with the German Champions, according to reports.

The Mirror is reporting that Bayern have offered Guardiola a whopping £17million a season to stay at the Allianz Arena, and it is understood the contract could be finalised before Christmas.

Premier League clubs Manchester City and Chelsea had hoped to lure the Spaniard to England at the end of his current contract, but it now appears likely Guardiola will extend his stay in Germany for another two seasons.

It is understood Guardiola still harbours ambitions of managing in the Premier League and a move to Old Trafford could be on the cards in 2017, when current Manchester United manager Louis van Gaal's contract is set to expire.