Pep Guardiola has agreed a new deal at Manchester City that will make him the world's best-paid manager, according to a report.

The Spaniard has just over 12 months left on the contract that he signed at the Etihad Stadium in the summer of 2016.

According to The Mirror, Guardiola agreed a one-year extension when he took his squad to meet owner Sheikh Mansour and chairman Khaldoon Al Mubarak in Abu Dhabi last month.

The report claims that the deal is worth £20m per year, which would put the former Barcelona and Bayern Munich head coach above China boss Marcello Lippi, currently thought to be on £18m per year.

Guardiola has steered Man City to the EFL Cup this season and is closing in on the Premier League title.