Pep Guardiola will be handed a huge warchest to overhaul Bayern Munch when he takes charge at the Allianz Arena this summer, according to reports.

Sources in Germany claim Guardiola will be given £240m to revamp the Bayern squad - and Liverpool striker Luis Suarez and Atletico Madrid star Radamel Falcao are currently top of his wishlist.

The former Barcelona manager is believed to be interested in signing Suarez, who, with his contract running out in 2018, will cost the German giants approximately £40million, according to L'Equipe.

Pep Guardiola
Pep Guardiola will take charge of Bayern Munich from next season [Reuters]

As he returns from his year-long sabbatical, it is also reported that Guardiola will attempt to trigger Falcao's release clause at Atletico Madrid, which is believed to be in the region of £60million - an unprecedented transfer fee in Germany.

Bayern, who already have a wealth of attacing talent in Arjen Robben, Mario Gomez, Thomas Muller, Mario Mandzukic and Franck Ribery on their books, would be making a serious staement of intent should they bid for Falcao and Suarez.

Between them the two strikers have scored 43 goals in all competitions this season. Suarez has scored 21 times for Liverpool while Falcao has 22 for Atletico, and the South American pair are widely regarded as two of the top goalscorers in world football.

Should they manage to gain either striker in the summer, Bayern would pose a serious threat in the Champions League - which they are desperate to win after losing last year's final in dramatic circumstances to Chelsea.

Bayern are already looking as though they will win the league title this season. They are currently 11 points clear of Bayer Leverkusen, and Gaurdiola may decide that the priority is to win a first Champions League trophy since 2001.