Pep Guardiola was reassured that Manchester City would win their ongoing legal dispute with the Premier League and avoid being relegated from the top tier before he put pen to paper on a contract extension until 2027, it has been claimed.

The reigning champions have been under scrutiny for the past 10 weeks by an independent tribunal, set up to adjudicate nearly 130 allegations that they failed to provide accurate financial information and did not cooperate with an investigation into their conduct.

City maintain they possess all the necessary evidence to establish their innocence - a belief echoed by Guardiola's decision to extend his tenure in Manchester to a decade and beyond.

Club insiders suggest the new deal signals a positive outcome will come in City's legal battle, per The Mirror.

On Friday, Guardiola pledged to honour his contract even if the club were found guilty and subsequently relegated.

However, the Catalan has full faith in chairman Khaldoon Al Mubarak and chief executive Ferran Soriano and anticipates a favourable verdict from the panel of High Court judges.

Under Guardiola's leadership, City have clinched six out of the last seven Premier League titles and two seasons ago became only the second English club to lift the treble.

Despite these successes, there are indications that Guardiola’s squad requires rejuvenation, particularly after Saturday night's 4-0 thrashing at the hands of Tottenham.

To this end, City will equip new sporting director Hugo Viana with a substantial transfer budget in the summer to secure the reinforcements needed.

And Guardiola will remain at the club to see his plans come to fruition courtesy of his new deal.

He said earlier this week before the defeat to Spurs: "I cannot leave. Maybe the four defeats were the reason why I felt I cannot leave.

"Since the beginning of the season I was thinking a lot in the moment, I will be honest, I thought (the season) should be the last one.

"But in the same moment the situation comes, the problems we have in the last month, I felt now was not the time to leave. I don’t want to let the club down, I would say.

"I felt the confidence from the chairman (Khaldoon Al Mubarak) and Txiki (Begiristain) and everyone, and I had the feeling I have to do it."