City are said to be prepared to offer the Spaniard a staggering £100m offer that would see him earn £20m over five years at The Etihad, thus making him the highest paid manager in the history of the game.
Guardiola is still in two minds about whether to stay with the Bundesliga champions beyond the end of the season, leaving room to suggest that he could be tempted away should the right offer come along.
“I have not made a decision yet as to what is best for this club,” he said.
“I am not convinced whether it is right for the club if I were to extend my contract. I’ll never be a problem for Bayern.
“When I reach a decision, I will talk to (Bayern bosses) Karl-Heinz Rummenigge, Uli Hoeness and Matthias Sammer.
“A year is a long time, three years is a lifetime at a big club.”
However, the former Barcelona coach has also revealed that he is yet to receive any offers, but The Sun claim that City are determined to bring him on board.
With just one year remaining on his own deal, it is believed that Manuel Pellegrini is having his last stand in the Northwest.
The Sun goes on to suggest that the writing was on the wall earlier this summer when City showed interest in both Carlo Ancelotti and Rafa Benitez, and unless the Chilean can bring home some major silverware this term he will find himself looking for a new job this time next year.