Six-time Premier League winner Guardiola gave City a major boost on Thursday night by penning a two-year extension, which will take his reign to over a decade.
Guardiola confirmed Mail Sport’s story from May that he was expected to leave next summer but suggested that a decisive display of commitment was required during City’s tricky run of form to send a message.
City had feared the 53-year-old was bidding farewell and have worked hard to convince him into renewing once more, with his relationship with chairman Khaldoon Al Mubarak a contributing factor in the decision.
‘Since the beginning of the season I’ve been thinking a lot,’ Guardiola said. ‘I thought that (this season) should be the last one.
‘But with the problems we had in the last month, I felt that now is not the time to leave. I would have let the club down.
‘I felt that I could not leave now. Simple as that. Maybe the four defeats was the reason why and I felt that I cannot leave. I felt the club still wanted me and the fact we’re still together so I signed.’
City have lost Premier League fixtures away at Bournemouth and Brighton, also suffering a 4-1 defeat at the hands of new Manchester United boss Ruben Amorim at Sporting. Tottenham knocked them out of the Carabao Cup.
That Guardiola has offered clarity over his future should galvanise a squad five points behind Liverpool in the title race as they attempt to lift an unprecedented fifth successive crown.
City face their north west rivals next week after meeting Tottenham on Saturday at the start of a crucial run of fixtures before Christmas.
The decision to extend also alleviates any potential problems of a managerial handover during a hectic summer that will see City compete at the Club World Cup in America.
Guardiola added: ‘Every time I sign a contract it’s “OK, the last two”. And after I re-signed the contract I said, “OK, the last two”. Honestly I think right now me and my staff deserve to be here. I’m not arrogant but it’s the truth.
‘We deserve the chance, after four defeats in a row, to try to bounce back and turn this situation.
‘I had the feeling that we had to take the right decisions for the future. I enjoy being here. I like my job. The moment I don’t have that feeling, even under contract, I will call my chairman and chief executive to say the best for the club right now is that I have to leave.’
City were looking at losing both Guardiola and sporting director Txiki Begiristain but have now sorted both roles after the appointment of Hugo Viana as the latter’s successor.