Manchester City manager Pep Guardiola has signed a two-year contract extension that will keep him at the club until 2027, the Premier League champions said on Thursday.

Spaniard Guardiola's decision means he will spend more than a decade at the club he joined in 2016 and has led to a dazzling array of silverware, including six Premier League titles and one Champions League crown.

The news will be welcomed by City's fans who might have feared the Guardiola era was drawing to a close with his current deal expiring at the end of this season.

"Manchester City means so much to me," the 53-year-old, who previously had successful spells at Barcelona and Bayern Munich, said in a statement.

"This is my ninth season here; we have experienced so many amazing times together. I have a really special feeling for this football club. That is why I am so happy to be staying for another two more seasons."

Guardiola joined Abu Dhabi-owned City in 2016 and has turned them into a trophy-winning machine.

He has guided City to 18 major trophies and established a brand of football that is admired across the globe. This season has brought a slight dip in form, however, and they are on a four-match losing streak, the worst since Guardiola arrived.

"Like every City fan, I am delighted that Pep's journey with Manchester City will continue; allowing his dedication, passion and innovative thinking to continue to shape the landscape of the game," City chairman Khaldoon Al Mubarak said in a statement.

"His hunger for improvement and success remains insatiable and the direct beneficiaries of that will continue to be our players and coaching staff, the culture of our Club, and the English game at large."

British media reported on Wednesday that Guardiola had agreed a one-year extension but his tenure will now stretch past a decade is a massive boost for the club which is under investigation for more than 100 alleged breaches of the Premier League's financial rules over a nine-year period.

City deny all the charges against them.

They are five points behind Liverpool in the Premier League table but Guardiola sounded an upbeat note.

"I have said this many times before, but I have everything a manager could ever wish for, and I appreciate that so much," he said. "Hopefully, now we can add more trophies to the ones we have already won. That will be my focus."