Pep Guardiola has signed a new two-year contract with Manchester City that will extend his tenure as the manager to 2027, and has said the champions’ current bad form stopped him leaving in the upcoming summer.

The 53-year-old’s decision to commit for two more seasons – he had been expected to sign up for just one – after the current campaign is a major boost for the club, particularly as it comes during a run of four consecutive defeats, the poorest sequence of form under his management.

Since the beginning of the season I’ve been thinking a lot,” Guardiola said in an announcement video. “I want to be honest, I thought this [season] should be the last one. But the problems we had in the last month, I felt now was not the right time to leave.

“I didn’t want to let the club down. I felt I could not leave now, simple as that. Don’t ask me the reason why. Maybe the four defeats was the reason why I felt I cannot leave.”

Guardiola will have completed 11 years at City when his fresh terms end. He is already the longest-serving manager in the Premier League and the second-longest across all four divisions.

He added: “Honestly, I think myself, my staff and friends, I think we deserve to be here. I am sorry to say. I am not arrogant to say, but it’s the truth. I think we deserve after four defeats in a row to bounce back and try to turn the situation. In that moment, in the period, I had the feeling you have to take the right decisions for the future and I want to take it.

“Manchester City means so much to me. This is my ninth season here – we have experienced so many amazing times together. I have a really special feeling for this football club. That is why I am so happy to be staying for another two more seasons.”

Guardiola thanked City’s proprietor, Sheikh Mansour, the chairman, Khaldoon al-Mubarak, the chief executive, Ferran Soriano, and Txiki Begiristain, the departing sporting director who is also a close friend.

He said: “Thank you to everyone for continuing to trust and support me – the owner, the chairman Khaldoon, Ferran, Txiki, the players and of course the fans – everyone connected to Manchester City. It has always been an honour, a pleasure and a privilege to be here. I have said this many times before, but I have everything a manager could ever wish for, and I appreciate that so much. Hopefully now we can add more trophies to the ones we have already won. That will be my focus.”

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