The Manchester outfit broke records after winning the Premier League with a 100 points, the most any team has ever amassed in a single season.
Manchester City's Pep Guardiola says he is still trying to improve as a coach after nine years in management. "It's a pleasure to be able to work here", he declared.
"Ederson, for example, was flawless, but then at the end you are saying "go and try the Premier League and try to play" and you don't know if it's going to happen".
"I am trying, with all my efforts and desire to avoid that, and instead of making a step back we are going to make a step forward to maintain the level of this club".
The new deal could take Guardiola's total reign at City to five years - one more than his tenure at Barcelona.
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Club chairman Khaldoon Al Mubarak is delighted to have tied the Spaniard down to a new long-term contract.
This season has seen his team win the Premier League and Carabao Cup in record-breaking fashion.
As well as their landmark points haul, formidable City also finished the campaign with a record 106 goals scored and 32 victories.
"100 points is a lot; 50 points at home, 50 points away so it means how stable, how good we were all the season".
Pep has shown this style can succeed in the Premier League in a way it has never been done before.
Guardiola joined Man City at the start of the 16-17 season, and went trophy-less for the very first time in his career, calling the season a "failure".
They are not a big club and have been made "big" by a sugar-daddy benefactor who has put them on a pedestal for the last few years that has been unnatural given their modest fan base and lack of history.