The former Barcelona boss is the man widely credited for the rise of the Catalan giants in recent times, and has enjoyed a similarly successful spell in Germany since taking charge of the Bavarians at the start of last season.
However, reports claim that he’s not looking to stay beyond his current contract, which expires at the end of next term, and has informed the club of his choice.
This has alerted both Arsenal and City, with the pair keen on the 44-year-old.
Current Gunners chief Arsene Wenger is now 65, and reports suggest that the club may look to lure him into an ‘upstairs position’ after intense criticism from some supporters for his playing style and methods.
City’s Manuel Pellegrini’s deal will expire at the same time as Guardiola’s, opening the door for a potential swap at the Etihad Stadium.