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Guardiola's new deal will also lead to further speculation over the club signing FC Barcelona's Leo Messi.
Thirty years of hurt came to an end for Liverpool when they were confirmed as Premier League champions on Thursday courtesy.
Manchester City supporters vented their anger over the club's two-year ban from European football.
Manchester City manager Pep Guardiola has said he will definitely be in charge at the Etihad Stadium next season.
Ten-man Manchester City gave up a two-goal lead as they crashed to a 3-2 defeat by Wolverhampton Wanderers at Molineux on Friday.
Raheem Sterling scored an 11-minute hat-trick and had a hand in all five goals as Manchester City came from behind to thump Atalanta 5-1.
Quickfire goals from Gabriel Jesus and David Silva set up a comfortable 2-0 win for Manchester City over Crystal Palace at Selhurst Park.
Manchester City defender Aymeric Laporte has had knee surgery after damaging his cartilage and lateral meniscus
Liverpool's Juergen Klopp said that victory could "change the world" for his team -- rather than hinder their domestic title bid.
Manchester City owners are considering investing in a club in India as part of an effort to increase their presence in Asia.
Manchester City will play a pre-season match in Japan for the first time when they take on J League side Yokohama F. Marinos on July 27.
Leroy Sane struck the winner as Manchester City beat Liverpool 2-1 at the Etihad Stadium in a fierce Premier League contest on Thursday.