Manchester City have confirmed that Pep Guardiola will become the club’s new coach, with current boss Manuel Pellegrini stating he is content with the decision.

Guardiola announced in December that he would be leaving Bayern Munich after this season and also that his next job would be in England. There have been a number of reports in the past month claiming he would be replacing Pellegrini and the club have now confirmed his appointment.

A statement issued by Manchester City on Monday said: “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.”

As the news came through, Pellegrini was concluding his press conference before Tuesday’s Premier League game against Sunderland. The Chilean was quick to point out that he had been fully appraised of the situation and had been made aware of Guardiola’s appointment a month ago.

“Before I finish, I want to tell you I have talked with the club and I will finish my contract on the original date,” he said.

“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.

“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 I 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.”