Danny Mills believes Manchester City will benefit from resolving Pep Guardiola's uncertain future at the club sooner rather than later.

Guardiola is in the final year of his contract with City and had dropped hints towards the end of last season that this could be his last on the blue side of Manchester.

However, recent reports suggest he could be signing a one-year extension to keep him at the Etihad for a 10th year.

The Spaniard joined the club in 2016 and has won 18 trophies with the club, including six Premier Leagues, winning the last four in a row, a Champions League, two FA Cups, four EFL Cups, a UEFA Super Cup, and a Club World Cup.

Mills, who played for City between 2006 and 2009, says it will be better for everyone at the club when a decision over his future has been made.

"It's very, very difficult to know what Pep is going to do. He's very much a man inside his own head," Mills told Stats Perform.

"I don't think he gives too much away about his thought process. We know he's incredibly intense. His dedication is unrivalled at times.

"He's constantly thinking about football, thinking about Manchester City. That's what he does, and he's incredibly good at it. Only he will know what the next stage of the process is."

"We saw before at Barcelona that he needed a break after three or four seasons because he was burned out. He needed a break after three seasons at Bayern. He's been at Manchester City longer than at any other club.

"He's been very, very successful in that time, remodelled the team several times, changed the style of play, dealt with players coming in and leaving, and handled all types of pressure. He's won everything there is to win in that time.

"I think he's earned the right to decide what he wants to do. If he stays, recruitment might look a little different compared to if he decides to leave. A new manager might want a slightly different style of player.

"Look at what Liverpool did with Arne Slot. The players Klopp wanted will be similar, but a new manager always wants to put their own slant on things.

"The conversations now about recruitment for January or next summer will be slightly different if Pep is involved compared to if a new manager is coming in. Some players might look at Pep and think, 'I want to play under him because we know each other, and he knows how I play'.

"A new manager with a different style might not give those players the same security. So, they'll start wondering, 'If Pep goes, where does my future lie at the club?' It just creates a bit of uncertainty. The sooner that's resolved, the better for Manchester City."

Guardiola has won 353 of his 490 games in charge of City in all competitions (D70 L63), boasting a 72.04% win rate. In that time, they have scored 1,200 goals.

The 53-year-old has seen a number of records broken while at the helm, including the record points total in a Premier League season when they won the title with 100 points in 2017-18.

Having overseen so much success in his first eight seasons, Mills admitted it would be hard to find someone to fill the gap he will leave behind.

"I think it's really difficult to find someone to replace Pep. It's a bit like replacing Alex Ferguson. It's very, very difficult," he added. "Or replacing Arsene Wenger.

"Okay, Wenger maybe stayed a little too long, but when he was in his prime period, there wasn't anyone who could replace him.

"Pep reinvented football in the Premier League, changed the way Manchester City play, and influenced how a lot of teams play."

"Who do you bring in to take that to the next level? There will be young coaches who get an opportunity. Obviously, Arteta is a big rival at the moment, but he knows the football club, so his name will be in the conversation.

"Someone like Ruben Amorim might have been mentioned, but he's now crossed to the red side of Manchester, so that rules him out.

"Manchester City used to have the people in place to ensure the succession plan was lined up. Some of those people are now moving on, which creates some uncertainty. City's planning has always been exceptional from top to bottom, from the sporting director to academy coaches, but that's been disrupted recently.

"You also throw in the 115 charges against the club. Who knows what's going to happen with that? I think a lot of the charges are spurious. Look at Forest and Everton – they got penalised for two charges, and City have 115. Some will be trivial, like not dating a piece of paper properly or signing in the wrong place.

"Still, we have to wait for the outcome of that. It doesn't affect the players now, but it could impact the team and the club going forward."

Even if Guardiola stays, there will come a time when he no longer sits in the City dugout, but Mills believes he will have a lasting legacy due to his influence over the English top-flight.

"I think Pep's legacy is incredible. What's he won at the moment? Four Premier Leagues in a row, six out of seven, which is phenomenal. Pep has only ever finished outside the top two once," Mills said.

"I think that was his first season at Manchester City. He's only finished outside the top two once in his entire career. That's unbelievable. It's a ridiculous record. He's always finished first or second, and that's part of his legacy.

"The way he changed the style of play is another key part. A lot of people doubted whether it was possible to play that way in the Premier League, playing out from the back.

"Look at what the goalkeeper position has become. Look at teams taking goal kicks and playing one-twos in their own six-yard box. That's all down to Pep. That's another part of his legacy.

"So, I think there are two parts to it. His winning legacy is phenomenal, and his success rate is unrivalled at the moment. He has to be up there with the best of all time. But also, the style of play and the way he moulded what many thought was impossible and now everybody has copied it.

"One of the biggest forms of admiration is imitation, and everybody has tried to copy Manchester City. They haven't quite managed it, certainly, not in terms of quality, but in an ideal world, everyone would want to play winning football in that style."