• Spanish radio station says manager will leave Germany at end of season • Guardiola is in final year of three-year contract with Bayern

Pep Guardiola has agreed to leave Bayern Munich at the end of this season and take over at Manchester City, according to reports in Spain.

The former Barcelona manager is in the third and final year of his contract with the German champions but Bayern’s chairman, Karl-Heinz Rummenigge, admitted on Thursday that they have yet to enter negotiations over extending his stay.

However, the respected Spanish radio station Cadena COPE is reporting that Guardiola has already decided he would like “a change of scenery” and will succeed Manuel Pellegrini at the Etihad Stadium.

“Pep Guardiola will leave Bayern Munich at the end of this season and will train Manchester City next season,” read the report.

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“Guardiola has decided on a change of scenery. He considers his time in Germany will end on 30 June after three seasons and, therefore, fulfil one of his wishes: to coach in England.”

The report also claims that Pellegrini – who signed a two-year extension to his contract in August – will be allowed to leave his post a year early to make way for Guardiola. The former Chelsea and Real Madrid manager Carlo Ancelotti is rumoured to be the favourite to take over at Bayern should Guardiola leave.

Given the presence of the chief executive Ferran Soriano and the director of football Txiki Begiristain, both of whom he worked with at Barcelona, the former Spain international has been linked with the City manager’s job several times in the past. But after Rummenigge confirmed that Bayern will not decide the manager’s future until after they play Hannover on 19 December, there are clearly doubts whether he will commit to a new contract.

“It is not planned to push back that date,” said Rummenigge. “We have always said there will be a decision in 2015. I know that it’s late, just days before Christmas. But the talks will be held after the Hannover match, and we’ll then announce a decision.

“It always continues. There is no person in this world who can’t be replaced at some point. That’s the state of things. Players come, players go, and the same applies to coaches. They come and they go at one point.”