Pep's probably staying in Manchester City until 2027. He's not only getting one year contract extension, but there is also an option to add another year. He's probably getting two year extension from Manchester City.
I have also read about this which is definitely very good news for Man City fans and also for the club because they will be successful in keeping Pep Guardiola in their team. Because if Pep leaves then we don't know whether Man City will remain strong or not. Because so far Pep has been the one who has succeeded in resurrecting Man City since his arrival in Man City, namely from 2016 until now. a contract extension of 1 season and with the option of an additional 1 season is quite good. But it also means Pep probably won't exceed that limit at Man City.