From all the news we have seen so far, it can be assumed that Guardiola is not interested in extending his contract with Manchester City. This is probably going to be Guardiola's last season with Manchester City. Guardiola is now interested in becoming a national team coach. But we do not know if this team is Brazil yet. I have not seen any rumors about this. However, City is in very bad form now. They have lost four matches in a row. However, I am waiting to see if Manchester City's performance improves after the international break. City's squad is strong, Guardiola is also a very experienced coach. So it is hoped that City's performance will stabilize in the coming matches.
Pep Guardiola has really made his name at Manchester city and not only at Manchester city but to other top European teams like Barcelona and Bayern munich so it has been a successful coaching career for him, if he decides to switch over to coaching any National teams, he may have the opportunity of winning the world cup. Whether Manchester city performs better or not, i think Pep can decide to leave the team to coach any top clubs that may need his service but due to how successful he has been while coaching club sides, making a move to National team will be more preferrable than coaching another club side again. Even if the speculation of a possible move to the Brazil National team is a rumor, i believe it will be clear on his final decision soon so let us just watch out for his next action.
Manchester city might make improvements after the international break but i don't think they can be able to maintain consistency till the season ends.