‘It is the perfect moment’ - Guardiola reveals reason for stepping down as Man City manager
The club announced that the 55-year-old's final match in charge will be Sunday's home fixture against Aston Villa.
Since his arrival a decade ago, Guardiola has guided City to an unprecedented era of success, securing 17 major trophies, including six Premier League titles and a historic Champions League victory.
The decision comes a year before his contract was due to expire, with reports earlier in the week suggesting the club was preparing for his departure.
Guardiola reveals reason for leaving
Guardiola admitted he felt he would no longer have the drive required to compete at the highest level.
"I feel I would not have the energy required daily, every three days, to fight for the title," he explained.
"After 10 years, it is good to shake things up, to see different faces—it's really good for everyone. If I did not believe that, and if they didn't sack me, I would stay. But I think it is the perfect moment."
Guardiola informed his squad of the decision on Friday morning, describing his speech as "a disaster" due to his nerves.
In a video announcement, he added, "Nothing is eternal. Eternal will be the feeling, the people, the memories, the love I have for my Manchester City."
Former Chelsea boss Enzo Maresca, who previously worked as an assistant to Guardiola, is considered the frontrunner to take over.