Pep Guardiola
Pep Guardiola's current contract with Bayern expires next summerGetty

Bayern Munich manager Pep Guardiola will announce next week that he will leave the Bundesliga giants at the end of the 2015-16 season, according to reports.

Spanish daily Marca claims the former Barcelona manager has opted not to renew his stay due having reached "breaking point" due to a "fundamental disconnect between his footballing philosophy and the club's ethos".

Guardiola has been in negotiations with the club over renewing his stay at the Allianz Arena but persistent reports suggest both Manchester United and Manchester City have reached out to the Spaniard.

Speaking after his side's German Cup victory over Darmstadt on 15 December, the manager said he will soon clarify his position. Guardiola told German broadcaster ARD: "Tonight I have no answer. Next week you will know the answer. Next week there will be clarity."

But Marca claims the decision has already been made to find a new club, despite offering the 44-year-old a colossal contract worth €20m (£14.5m, $21.8m) a season.

Guardiola is perhaps the most sought-after manager in world football despite being under contract at Bayern, where he has won two Bundesliga titles since his appointment in 2013. Current Manchester City manager Manuel Pellegrini signed a contract extension until 2017 in August but the club are likely to be tempted to bring Guardiola in should he become available.

According to Pep Confidential, the book that chronicled his first season in Germany written by Spanish journalist Marti Perarnau, Guardiola had been taken with the idea of managing United prior to signing with the Bundesliga giants.

And Franz Beckenbauer, honorary president of Bayern Munich, believes the club's global popularity could lure the manager to the red half of Manchester. "Pep is an issue for every top club in the world, this is normal," he told Sky Germany, Merkur reports. "He can choose the club where he wants to go. And Manchester United is perhaps the number one worldwide in popularity."