There is legitimate uncertainty over whether Pep Guardiola will complete the final year of his Manchester City contract, sources told BBC Sport. The 55-year-old manager signed a two-year extension in November 2024, but industry speculation suggests a decision on his future will come at or after season's end.

Guardiola has 18 months remaining on his current deal. The extension prevented an immediate departure scenario when he had just six months left on his previous contract.

Sources indicate the expectation within football circles is that Guardiola will make a decision on his future toward the conclusion of this campaign. If he remains for next season, it is viewed as unlikely he will sign another extension.

City would prefer Guardiola to stay as long as possible. The manager continues to publicly express his love for the club and has shown no outward signs of preparing to leave.

The club considers talk of Guardiola departing this year as mere speculation. However, sources confirmed genuine doubt exists about whether he will fulfill his contract through its June 2027 expiration.

City completed a 5-1 aggregate victory over Newcastle in the Carabao Cup semifinals Wednesday. The club will face Arsenal in the final on March 22 at Wembley, giving Guardiola an opportunity to win his 19th trophy with the club.

The manager has won the EFL Cup four times previously during his tenure. City have captured multiple Premier League titles and the Champions League under the Spaniard's leadership since his 2016 arrival.

City recently signed Antoine Semenyo and Marc Guehi during the January transfer window for a combined $84 million. Both players negotiated long-term deals despite the managerial uncertainty.

Sources close to the transfers indicated City's pitch centered on guaranteed trophy competition and consistent Champions League qualification rather than solely working under Guardiola. The club emphasized their world-class squad and commitment to recruiting elite talent.

Rival executives have attempted to use the emerging managerial situation to discourage players from joining City. The club maintains their recruitment operations are not dependent on Guardiola's employment.

Chairman Khaldoon Al Mubarak remains at the heart of City's operation. No significant decisions are made without his input, and he will be central to appointing Guardiola's eventual replacement.

Sporting director Hugo Viana will lead the managerial search. Viana replaced long-serving Txiki Begiristain in October 2024 following a six-month handover period.

City face an ongoing legal battle over 115 charges related to alleged Premier League financial rule breaches. The club strongly denies any wrongdoing.