The Spaniard penned a three-year deal when he took charge at the Etihad Stadium in 2016 and offered no assurances he would stay beyond his original contract, having worked to a similar timeframe at his previous club, Bayern Munich.
City's hierarchy have been determined to extend the former Barcelona manager's deal having seen Guardiola's team take the Premier League by storm this season.
The Citizens look to have got their way with Guardiola having reportedly agreed terms on an extension which will see his annual wages rise by around £3million to £20million per year.
Guardiola wants to wait until after he has won his first piece of silverware as City boss before he pens the deal so an announcement could be made as soon as next week, should they win Sunday's League Cup final against Arsenal.
Guardiola's backroom staff are also thought to be in line for new and improved contracts.