Pep Guardiola has signed a three-year contract with Manchester City after Manuel Pellegrini confirmed he is leaving at the end of the season.

Pellegrini broke the news at his press conference ahead of Tuesday night's clash at Sunderland, while City affirmed they had discussed the job with Guardiola in 2012.

City's desire to appoint Guardiola had been an open secret and they released a statement on Monday stating he will join the club.

Pellegrini said the club did not go behind his back and the 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.'