That doesn't read like a concrete plan to leave after 7 years to me.
If he feels he has more to do at City and he has the energy for it, he'll extend IMO.
Hopefully, it will be because players like Delap, Doyle, Romeo Lavia, Palmer, McAtee(alongside Foden and Torres) have broke through to the first team. Then, he decides they are playing so good, that he's having too much fun to move on just yet. That's because he wants to shove it in the faces of every media **** going, while they smash straight through every cartel club they come up against. To show them, that it's never been about the money, only about having the right players. [Ok, that many players coming through would be too good to be true but it's my fantasy football dream, ok?]
That said, 7 years is far longer than anyone said he'd commit to any club before he came to City, let alone City themselves. As a club, we should be planning well in advance for the right person to replace him. As fans, we should be grateful for what we've already had and start getting used to the idea, that even if he does extend, it wont be for a long period. Although, if you're reading this Pep, 10 is a much rounder number, don't you think? ;)