Pep Guardiola has said Manchester City’s recent struggles contributed to his decision to sign a new two-year contract which will extend his stay as manager to more than a decade.
The 53-year-old's previous City deal was due to expire at the end of this season.
Guardiola, who has won 18 trophies, including six Premier League titles and the Champions League while at the Etihad, admitted that while he had been thinking of leaving at the end of the season, City's recent four-game losing run was partly a factor in his decision to extend his stay at the club.
"Since the beginning of the season, I was thinking a lot, there were some moments, I have to be honest, I thought this should be the last one because every one is..." he told the club's website.
"But at the same time, when the situation comes and the problems we had in the last month, I felt now is not the time to leave, I would let the club down and I had the feeling I had to do it.
"Don't ask me the reason why. Maybe the four defeats were the reason why and I felt I cannot leave. I felt the club still want me or had the fact that we were together and that's the reason why we sign.
"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.
"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."
Speculation over Guardiola's future, rife for several months, had increased considerably after the club confirmed director of football Txiki Begiristain would be leaving at the end of the season.
Begiristain, a long-time ally of Guardiola, is to be replaced by Sporting's Hugo Viana, a former Newcastle player.
Ending uncertainty over Guardiola's position prevents further disruption next summer at a time when the club are also due to compete in the Club World Cup.
The news has come at a critical juncture in City's season. Hampered by injuries, the champions' form has wavered of late, with the team having lost their last four matches in all competitions, the worst run of Guardiola's career.
It has also been a difficult campaign off the field with the club facing 115 charges for alleged breaking of Premier League rules following an investigation into their financial affairs.
Guardiola succeeded Manuel Pellegrini at City eight years ago after previous successful spells in charge of Barcelona and Bayern Munich.
Meanwhile, City Chairman Khaldoon Al Mubarak spoke of his delight at the manager's decision to stay in Manchester for two more years.
"Like every City fan, I am delighted that Pep's journey with Manchester City will continue; allowing his dedication, passion and innovative thinking to continue to shape the landscape of the game," he told the club's website.
"His hunger for improvement and success remains insatiable and the direct beneficiaries of that will continue to be our players and coaching staff, the culture of our Club, and the English game at large.
"This renewal will take Pep beyond a decade of coaching Manchester City and the opportunity to continue to re-write the managerial record books."
Sky Sports News reporter Ben Ransom:
"I think the timing of the news has come as a surprise. We got the sense as this season has gone on that Pep was more inclined to stay.
"This is his ninth season so he's not going to do another nine, of course not. But for him to say that, to be in that reflective mood, to probably see this team and the way it's evolved and where they are right now, he had a lot to think about.
"His family are still in Catalonia and Barcelona. That would have been a big draw, taking him back to Spain. But alongside that is the job and the club that he absolutely loves.
"And Pep has a loyalty to Manchester City, which we've seen. He clearly loves the job. He loves the challenge of trying to win the Premier League.
"And I think it's that that's just tipped him over the edge to want to stay. Especially his good friendship with Txiki Begiristain. We know he's leaving at the end of the season.
"We know Hugo Viana is coming in this kind of sporting director/director of football role. That is a new relationship. It's a new era. It's a new challenge. And I think Pep must have felt that in leaving now, he wasn't doing the right thing by the club. They need him.
"They need someone they can rely on. And when you look at his record, of course they can rely on Pep."
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