Pep Guardiola has confirmed he will make a decision over his future with Bayern Munich in the next week amid increasing speculation that he could be set to replace Manuel Pellegrini at Manchester City.

The Spaniard, who is in the final year of his contract with the German champions, has been repeatedly linked with a move to the Etihad Stadium next season with some reports in Spain last month stating that he has already decided to continue his career in the Premier League.

After Bayern’s 1-0 win over Darmstadt on Tuesday night, Guardiola refused to comment on questions about his future. “Tonight, I have no answer,” he said. “Next week there will be clarity.”

Departure

However, reports in Germany have stated that Guardiola has already informed Bayern that he will not sign a new contract, with Bild claiming the Bundesliga champions are now braced for his departure.

Last month, the Bayern chairman Karl-Heinz Rummenigge revealed that they had yet to begin negotiations over extending Guardiola’s stay but admitted talks were scheduled to take place after Bayern’s match against Hannover on Saturday.

“It is not planned to push back that date,” said Rummenigge. “We have always said there will be a decision in 2015. I know that it’s late, just days before Christmas. But the talks will be held after the Hannover match, and we’ll then announce a decision.

“It always continues. There is no person in this world who can’t be replaced. Players come, players go, and the same applies to coaches. They come and they go at one point.”

The Bayern captain Philipp Lahm has told Guardiola that the squad would like him to stay. "The team's position is clear, we enjoy working with our coach and we really, really want to keep doing so," he said.

The Spanish newspaper Marca has also reported that Guardiola's mind is made up. Yesterday it published a story claiming the 44-year-old has rejected Bayern's offer of a new deal worth €20 million a season and is expected to join City next season. That followed reports last month that the former Barcelona manager is set on leaving Germany because he would like "a change of scenery".

Given the presence of the chief executive Ferran Soriano and the director of football Txiki Begiristain at the Etihad, both of whom he worked with at Barça, the former Spain international has been tipped for the City manager's job several times. Manchester United have also been linked with Guardiola in the past, although sources at Old Trafford told The Guardian last week that they intend to take a back seat when his contract with Bayern expires at the end of the season because of the timing of his availability and their support for Louis van Gaal.

Favourite

The former Chelsea and Real Madrid manager Carlo Ancelotti is rumoured to be the favourite to take over at Bayern should Guardiola leave, with the Italian already reportedly having been sounded out by officials at the German club.

Ancelotti, who was sacked by Real in the summer and replaced by Rafael Benítez, is currently on a sabbatical having had a back operation in August.

After succeeding Jupp Heynckes in 2013 after Bayern's victory over Borussia Dortmund in the Champions League final, Guardiola has yet to win Europe's premier club competition for his current club. He has guided a star-studded squad to successive Bundesliga titles, with Bayern five points clear of closest challengers Dortmund in this season's standings.

Bayern, who have been knocked out of the Champions League in the semi-finals for the last two seasons under their Spanish manager, will face Juventus in the last 16 of this year's competition. Guardian Service