Pep Guardiola’s new one-year contract with Manchester City does not contain a break clause should the club be relegated from the Premier League if found guilty of financial wrongdoing by an independent commission.

The club are defending themselves against more than 100 charges brought by the Premier League. City deny all allegations. If the champions are found guilty then, depending on the severity of the verdict, one potential sanction is demotion from the division.

Guardiola has agreed fresh terms with the club that extends his tenure there until summer 2026 but it is understood he does not have an agreement that he can walk away before then should City lose their top-flight status.

Guardiola has previously said he would relish managing City in a lower league should this be forced on them. A year ago, the 53-year-old was asked if he would consider his position should City be found guilty and relegated. “A good question,” he replied. “I will answer when I have the sentence.

“You are questioning like we have been punished. And in the moment we are innocent until guilt is proved. I know the people want it. I know, I feel it. I will wait. Wait and see it and after the sentence has been done we will come here and explain it.

“But absolutely I will not consider my future [if] it depends on being here [Premier League] or being in League One. Absolutely. There is more chance to stay if we are in League One than if we were in the Champions League.”

Guardiola has led City to six Premier League titles, two FA Cup, four League Cups, the Champions League and the Club World Cup since taking charge in 2016.