Manchester City were hammered 4-0 by Tottenham at the Etihad Stadium, extending their losing run to five matches in all competitions.
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.
Manchester City have lost each of their last four matches in all competitions, and Pep Guardiola admitted he is worried.
City's 4-1 defeat to Sporting Lisbon on Tuesday was a third straight loss for the English champions -- the first time that has happened since 2018.
Pep Guardiola believes Manchester City will struggle to overcome a mounting injury crisis but encouraged the English champions to bounce back in Tuesday's Champions League trip to Sporting Lisbon.
Sporting Lisbon coach Ruben Amorim, who will take over at Manchester United next week, hailed Manchester City manager Pep Guardiola as the best in the world on Monday.
The defeat dropped City to second spot, two points behind Liverpool who recovered to beat Brighton & Hove Albion 2-1.
Pep Guardiola says Manchester City face an "emergency" in certain positions as he grapples with a punishing injury list ahead of Saturday's trip to Bournemouth.
"What can I say?," said the Spaniard. "First, to congratulate him and all his family and their friends, it's incredible news for him and for all of us."
Mikel Arteta admits Arsenal will have to be almost perfect in their pursuit of Manchester City if the Gunners are to end their long wait for a Premier League title.
Manchester City will be without Rodri for the start of their Premier League title defence after Pep Guardiola revealed the Spain midfielder has been ruled out of Sunday's opener against Chelsea.
Toni Fernandez, who signed with Barca earlier this month after turning 16, flicked in a left-footed shot past reserve City goalkeeper Stefan Ortega to give the German manager's side a 4-1 win on penalties after the teams played to a 2-2 draw.
De Bruyne has just one year left on his current City contract and the midfielder revealed recently he has spoken with his wife Michele about his future plans.
Manchester United manager Erik ten Hag hopes to bolster his chances of avoiding the sack by ruining Manchester City's history bid in the FA Cup final on Saturday.
The Spanish coach has previously won the award four times since he joined the club in 2016. With six league titles, he is now the joint second-most successful coach in the history of English football.
Pep Guardiola's ability to bend the Premier League to his will was once questioned but the Manchester City manager has seen off the early doubters during a period of unprecedented dominance, with his latest triumph making City the first side in English football history to win four top division titles in a row.
"The reality is I am closer to leaving than staying," the Spaniard told Sky News, before clarifying that there would be no immediate departure from the club he has managed since 2016.
"The tennis players say 'the serve to win Wimbledon', the last match, is the most difficult," Guardiola told the BBC.
Manchester City have lost all four Premier League matches they have played at the Tottenham Hotspur stadium but the defending champions must change that when they visit the North London side on Tuesday, manager Pep Guardiola said.