Pep Guardiola says he ultimately decided to extend his stay at Man City because he has "unfinished business" with the club.
Since arriving at the Etihad in 2016, he has guided the team to two Premier League titles and one FA Cup, though glory in the Champions League, a holy grail for the owners, has so far evaded him.
In the 2019/20 campaign, they were defeated to the Premier League by Liverpool, who won the English top flight for the first time in 30 years.
They would only win the League Cup from their efforts last year.
With no major competitions won in the last 12 months, Guardiola was keen to stay to bring back success.
“In the end we decided that the best for all of us is to continue because still we have the feeling that there is still unfinished business and still there is something to do and continue what we have done in the last years," he told the official club website.
“This club won in the recent past, but together we won a lot and we won a lot and we won again.
“The target at this club, like in the past has not won a lot of titles is continue to try to maintain the structure of the club as long and as much as possible.
“I have the desire to help with all the fantastic players we have for the next years, especially for the fans and we will feel proud of the way we play and the way we win.”
Guardiola admitted that the prospect of leaving without having the fans back in the stadium to say goodbye also played a part in his decision.
“I don’t want to leave without saying hello and maybe bye in the in the stadium,” he continued.
“All the clubs need fans, but of course especially I am talking about ours. They must know we think a lot about them when we play, especially at home.
“How empty and sad it is. But hopefully it will finish soon and finally we can be together. I want them to be proud."
City have made a poor start to the new campaign in 2020/21, winning just three of their opening seven matches to sit down in 10th.