Aguero was previously contracted with City until the summer of 2019, but boss Guardiola has confirmed that the Argentine frontman has agreed an extra 12 months on his deal.
City spent £27million this week to bring in Brazilian frontman Gabriel Jesus, but Guardiola still sees Aguero as his first-choice hitman, despite a modest six goals from his last 11 Premier League outings.
“He has already signed a contract extension,” said Guardiola. “Sergio will be here until he decides to be here.
“He’s our best striker. We have a problem with goals, so we need him. What I want is the best possible.
“Of course he wants to score, and sometimes he has had the chances.”