According to the Daily Mail's Jack Gaughan, confidence is high that talks will go smoothly as the Spanish manager has a strong relationship with the club's board.
Guardiola, 46, took over at the Etihad Stadium ahead of the 2016-17 campaign, signing a three-year deal.
After a disappointing first season at the club, he is enjoying his best start to a campaign as a manager, per Opta:
31 - With 31 points and a goal difference of +31, this is Pep Guardiola's best start after 11 games to a league season as manager. Stormer. https://t.co/qiM2Zx5Krr2017-11-6 10:00:11
City head the Premier League by eight points after 11 matches and have not lost a game in 2017-18.
Given City's current form, and their increasing prospects of winning major silverware under Guardiola, it is little surprise there is talk of the club extending the manager's deal.
Historically, though, the former defensive midfielder has favoured relatively short spells in charge of teams.
He called it a day as Barcelona manager after four seasons at the helm, during which he won three league titles and two UEFA Champions Leagues, among numerous other trophies.
Guardiola then took a year out before a three-season spell in charge at Bayern Munich, where he won a trio of Bundesliga titles.
Were he to sign an extension on his current City deal next summer his stay at the Etihad could end up being the longest of his managerial career so far.
It is likely only City's opponents would have any problem with that given how impressive the Sky Blues have been under Guardiola so far this season.