Guardiola, who has guided City to four Premier League titles, four League Cups and the FA Cup, will be out of contract in 2023 and his future at the club remains unresolved.
Asked what City's future would look like if he did not sign a contract extension, Guardiola told reporters, "the club knows exactly what is the next step."
"No one can see the problems (of the future) but I am 100% convinced," the Spaniard added, speaking ahead of City's clash against rivals Manchester United.
"They know what the strategy is, what they have to do right now, tomorrow and for next season. When the club depends on one person we have a problem. If the club just depends on Pep it is because we have not done well.
"I never buy players, it is not my money. It is the club. The club is the most important word. Every decision we make is thinking about the club..."
City, who are second in the league standings, host sixth-placed United later on Sunday.
