Bayern Munich are reportedly "confident" that manager Pep Guardiola will sign a new contract before Christmas.

The Bundesliga giants are hoping to lock the Spaniard into a two-year deal worth £17m per year, according to The Mirror.

Bayern are said to be keen to quash speculation linking Guardiola with a move to the Premier League with either Chelsea or Manchester City.

However, entering a contract that expires in 2017 could pave the way for the former Barcelona boss to succeed Louis van Gaal at Manchester United.

Guardiola is said to be interested in managing a Premier League club in the future, but reports suggest that he is likely to sign the contract extension at Bayern.