The Mirror claim the City boss has said that he will honour the remaining 12 months of his contract after UEFA handed down a two-year European suspension for breaking FFP regulations.
City are taking their case the the Court of Arbitration for Sport in a bid to get the decision overturned.
UEFA want to fast-track the process so that the ban will come into place next season, leading to speculation Guardiola will walk away from the Etihad.
If Guardiola stays, and City are unsuccessful in their appeal, it would be the first time he will not manage a team in Europe’s showcase competition.
City are aware that a ban would damage their chances of keeping their top players at the club, amid speculation they may also see points retrospectively deducted which could mean they see Premier League titles taken away from them.