What are the challenges ahead for Guardiola & Man City?

It was the news all Manchester City fans had been hoping for.

After months of speculation about his future, their manager Pep Guardiola has decided to extend his stay with the club for at least another year, taking him to summer 2026.

The 53-year-old Spaniard joined City in 2016 and has won 18 trophies so far, including six Premier League titles, two FA Cups and a Champions League.

The decision will come as a welcome relief to City fans and the club's hierarchy at a time when they are coming head on with a number of challenges both on the pitch and off it.

A bad run of form, doubt over some senior players' futures, changes behind the scenes and facing the Premier League's 115 charges for alleged breaches of financial rules, mean Guardiola and Manchester City have a huge few months ahead.

Man City may still be second in the Premier League but they are going through a slump in form that hasn't been since Guardiola took the reigns.

A defeat by Brighton last time out was the first time Guardiola has suffered four successive defeats at the club and was the first time since 2006 that City have lost four in a row.

The run certainly isn't terminal in terms of their bid to win a record-extending fifth straight Premier League title, given they are only five points behind leaders Liverpool and four points clear of third-placed Chelsea.

They also remain in a decent position in the Champions League group stage - despite being thrashed by Sporting - but know they must regain their form quickly to stay realistic contenders on all fronts.

It has been suggested in some quarters the uncertainty over Guardiola’s future was a significant factor in City’s current run, and there will now be the hope his decision can provide that clarity and certainty to propel the team forward.

A bigger issue though remains the injuries within his squad, with the absence of defenders Kyle Walker, Nathan Ake, Manuel Akanji, Ruben Dias and John Stones undoubtedly a key issue.

In addition, Phil Foden has struggled to find his form and Ilkay Gundogan is yet to reach the level of performance he was at before he left for Barcelona after helping City win the Treble in 2023. Kevin de Bruyne and Jack Grealish have been injured, while Ballon D’Or winner Rodri is out for the season.

City will get no sympathy because of their success and the money they have spent to achieve it, but that number of issues, to any squad in the Premier League, would have a negative impact.

Where Guardiola staying will have a major impact is on City’s plans for the future.

It has to be regarded as a positive for the club that Guardiola is not leaving at the same time as his long-time friend and director of football Txiki Begiristain.

Manchester United are yet to recover from the double blow of manager Sir Alex Ferguson and chief executive David Gill leaving in the summer of 2013.

Begiristain’s replacement, Hugo Viana, will need time to adjust after his move from Sporting. The combination of Guardiola, chairman Khaldoon al-Mubarak and chief executive Ferran Soriano provides that breathing space.

In the meantime, there are significant issues to address. The most pressing are whether City bring in a replacement for Rodri in January and whether to offer a new contract to De Bruyne.

The Belgian, 33, has started just 19 out of a possible 49 Premier League games since he was injured in the Champions League final victory over Inter Milan in 2023.

He has been linked with MLS expansion club San Diego but City sources have ruled out the possibility of De Bruyne leaving in January for the start of the US domestic season.

De Bruyne’s superb vision and ability to play passes into the right areas remains, but he is one of City’s highest earners and Guardiola needs him on the pitch more often.

Bernardo Silva, Stones, Walker and Ederson's current contracts run out in 2026, meaning decisions are also going to be made over their futures.

Does the current ageing squad - with nine over 30s - still have the desire and capability to push again or is it time to start building again?

It is often difficult to read Guardiola.

He can appear tired in news conferences but there is also an inner fire which has enabled him to set and maintain his standards.

There is also something different about his attachment to City.

He still talks about Barcelona as "his club" but he found the pressure suffocating and quit after four seasons.

At Bayern, he stayed for the length of an initial three-year contract and nothing more. At City, he admits, he has everything he needs.

He likes living in England, has no intention of moving to Italy, so what were the alternatives. The big question, post Treble triumph, is where does the motivation come from?

This season, there is a feeling he is responding to a double challenge. He has brought up City’s 115 Premier League charges on at least two occasions, suggesting the negativity attaching itself to the club is on his mind.

In addition, his side's form would concern any manager. His reaction has been telling. In the aftermath of the 4-1 defeat at Sporting earlier this month, when asked about the challenge in front of him, Guardiola replied: "I like it, I love it. I want to face it."

It almost feels as if, having achieved so much, he is relishing the prospect of having to prove doubters wrong.

It is significant Guardiola has committed his future to the club when the Premier League case is still to be decided.

It seems unlikely he will know how that will go but he has been consistent in cautioning against a rush to judgement before the full facts are known and also in his view that what he is being told about the club’s conduct backs up their view they have done nothing wrong.

Regardless, it is 12 months since he said pointedly he would stick around even if City were "relegated to League One".

That buys into the theory Guardiola’s ties to the City ownership are so strong he would not walk away if the worst was to become reality.

While there is so much uncertainty around the case itself, Guardiola has guaranteed one thing.

He will not only continue to be the public face of the club and have to deal with questions as they arise over the next few weeks but also will remain in post for months afterwards as the aftermath is debated.

The reality now – and it would probably have been the case anyway – is that Guardiola’s reputation will forever be tied to City’s, good or bad.

It is the way of football that even before City have confirmed the news, questions are being asked about the timing and what it means in relation to the England job.

A straight one-year deal for Guardiola could leave him free to replace Thomas Tuchel when his contract with the Football Association expires.

But Tuchel has not taken charge for a single game yet. If he fulfils his remit and wins the 2026 World Cup, would he walk away?

Would Guardiola be that keen to replace him? It does seem inevitable Guardiola will manage at international level one day – and if Spain is not an obvious move because of his stance on Catalan independence, England is an option.

He has also been linked to the Brazil job over the past few weeks and it is known Guardiola's ambition is to one day manage a national side.

But given we are talking about nearly two years down the line - and six months ago, it seemed certain Guardiola would be leaving City - it is probably wise to hold back from looking too far ahead.