Some time ago there were rumors that Kyle Walker would leave Manchester City and join Bayern Munich. But Pep Guardiola has stated that he hopes Kyle Walker can stay in Manchester City and we are even ready to fight to keep him so that no club can touch him. I think Pep Guardiola's actions were very appropriate to retain Kyle Walker and if we think his role is still very important in maintaining the defense of Manchester City.
Kyle Walker is a right-back with incredible pace and if he were to leave, who would replace him? even in the champions league against Vini, he was the one who managed to stop him and in the England national team he also managed to stop Mbappe at that time. So I think now Kyle Walker has more of a role to stop players at high speed because he is able to keep up with these players.
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https://twitter.com/FabrizioRomano/status/1683776160998596608Kyle Walker is 33 years old and also, his contract at Manchester City has only one season left. So, if Manchester City do not extend Kyle Walker contract then at least, Kyle Walker will have the opportunity to leave. But yes, if Manchester City can extend his contract at his old age, then it will make Kyle Walker will play even longer at Manchester City. It seems quite interesting also to look forward to, whether Kyle Walker will leave or stay until his contract ends.
I think it's not a matter of age or that his contract will expire next year, but this is more to appreciate Kyle Walker's consistent performance every season and because of that Pep Guardiola will be very happy to protect his players from offers from other clubs. Maybe Manchester City also doesn't want to extend his contract and prefer to continue the existing contract with the same salary until Kyle Walker is a free agent next year.
For Pep Guardiola, a Kyle Walker is an important figure to stop all opposing players who are on the right side of the defense and this may be more on Pep Guardiola's desire to be able to defend the EPL and UCL titles at the same time, therefore Pep Guardiola still needs Kyle Walker's services at least until next season.