Bayern Munich manager Pep Guardiola is set to leave the German club at the end of the season. Former Real Madrid boss Carlo Ancelotti is rumored to replace him and take over the reigning Bundesliga Champions at the Allianz Arena.

According to Sami Mokbel of The Daily Mail, Guardiola's contract expires at the end of the season and will not sign a new deal with the Bavarian giants. He is set to announce his decision in the coming days as the rumors of a £15 million-a-year salary with Manchester City is making headlines.

"Tonight, I have no answer. Next week there will be clarity," Guardiola said after their DFB-Pokal win over Darmstadt on Tuesday. The report added that the Spaniard turned down an extension from Bayern and will join City to surpass Jose Mourinho's annual £13 million salary with Chelsea.

Both Manchester United and Chelsea are also reported to be interested in the services of the two-time Champions League winner as their clubs are not performing well under Louis van Gaal and Mourinho, respectively. United is currently fourth in the EPL League Table, but it is below their expectations while defending champions Chelsea are sitting 16th and are just two spots and a point away from the relegation zone.

Guardiola is close to two City bosses, sporting director Txiki Begiristain and chief executive Ferran Soriano as they were part of the great Barcelona team that won multiple trophies in Spain and Europe in the second half of the 2000s, as reported by Squawka. They will ensure that their friend remains the best-paid manager in the Premier League and in the world.

According to Bleacher Report, the 44-year-old Spaniard is one of the best managers in the world of football right now. He started his managerial career at Barcelona in 2008 and has won three La Liga titles, two Copa del Reys, three Supercopa de España, two Champions League trophies, two UEFA Super Cups and two FIFA Club World Cups.

Guardiola took a one-year sabbatical from managing in 2012 before signing with Bayern Munich the next year. In Germany, he has won two straight Bundesliga titles, a DFB-Pokal, a UEFA Super Cup and a FIFA Club World Cup.

Manuel Pellegrini will become the casualty for City despite doing a good job winning the EPL title and League Cup in 2014. As for Bayern, they will have Carlo Ancelotti who is one of the best managers available.

The Italian has won three Champion League trophies, including giving Real Madrid "La Decima" in 2014. He has also won league titles in Italy, England and France while managing A.C. Milan, Chelsea and Paris St. Germain.