Pep Guardiola will manage Manchester City next season

Manchester City have confirmed Pep Guardiola will succeed Manuel Pellegrini as manager this summer.

Guardiola will take over on a three-year contract with Pellegrini set to officially depart on June 30.

The 45-year-old Spaniard announced in December that he would leave Bayern Munich in May after three years at the helm, with an intention to coach in England next season.

Fraser Dainton reports from Manchester City after the Guardiola announcement Fraser Dainton reports from Manchester City after the Guardiola announcement

A statement read: "Manchester City can confirm that in recent weeks it has commenced and finalised contractual negotiations with Pep Guardiola to become MCFC Head Coach for the 2016/17 EPL season onwards.

"The contract is for three years. These negotiations were a re-commencement of discussions that were curtailed in 2012.

"Out of respect for Manuel Pellegrini and the players, the club wishes to make its decision public to remove the unnecessary burden of speculation.

"Manuel, who is fully supportive of the decision to make this communication, is entirely focused on achieving his targets for the season ahead and retains the respect and commitment of all involved with the leadership of the club."

Manuel Pellegrini has announced that he will be leaving Manchester City Manuel Pellegrini has announced that he will be leaving Manchester City

Pellegrini revealed the news at the end of a press conference to preview Tuesday night's clash with Sunderland at the Stadium of Light.

"Before I finish, I want to tell you I have talked with the club and I will finish my contract on the original date," said the 62-year-old.

"I signed for one year more [in August he extended his contract until the summer of 2017] but with the clause that the club or me can choose not to use that now. So I finish here 30 June, so there is not the speculation.

Charlie Nicholas says the announcement might derail City's trophy hopes this season Charlie Nicholas says the announcement might derail City's trophy hopes this season

"The club are not doing anything behind me. I knew this one month ago but I don't think it's good to have rumour or speculation about these things, so I prefer to finish today, which is why I have told the players and I have told the press. I also spoke to the club two weeks ago and said that I would do it."

The much-travelled Pellegrini signed for City in 2013, becoming the first Chilean to coach in the Premier League.

During his tenure, City have won 64 of the 99 league games played. The only coach to have won more in his opening 99 Premier League games is Jose Mourinho (73).

City sit second in the Premier League behind Leicester and remain in the running for four trophies this season.