The Catalan, who joined the club eight years ago, has 12 months left on a contract that sources believe will be his last at the Etihad Stadium.
City will give Guardiola space to make a final decision on his future – and want the most successful boss in their history to extend his stay after 15 major trophies, including delivering a first Champions League.
But the club’s hierarchy fear that Guardiola’s ninth year will represent the end.
While City stress that there has been no formal indication either way from the 52-year-old, multiple sources within the industry and City have openly discussed the prospect of an impending departure over recent months.