My take on Pep's possible extension to stay at City... it very likely won't happen.
Pep puts enormous - probably bordering on unhealthy - effort into his job - obsessively reviewing film footage - demanding strict diet and behavioral regimes from his players - nothing but football matters.
My honest guess - after 3 years or so carrying on in this fashion - it just catches up to you. Approaching the end of season 3 as manager - you simply want a break.
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I don't know for sure - I don't have inside knowledge - but simply based on how Pep has behaved in the past, coupled with how extremely intense he seems to be with regard to coaching (based on his biographers) - I fully expect that this is our last season with Pep as our manager.
I suspect that he'll take a year off and then will select the most promising side to join as manager. PSG - should an opening there occur - would be my off-the cuff guess.