The veteran Brazil international midfielder is out of contract at the end of the season and there have been rumblings he could be following team-mate David Silva out of the door next summer.
City insiders, however, have revealed the club are planning to sit down with the 34-year-old after the busy festive period of fixtures and are confident they can agree a deal which now suits all parties.
It's understood a new 12-month deal will be on the table, with the promise of a rolling option, should he continue to defy his age and show his legs are up to the job.
Guardiola has told City's top brass how much of an influence Fernandinho has become this term in the dressing room, filling the huge leadership void left by former skipper Vincent Kompany, who left at the end of last season to become player-manager at Anderlecht.
Fernandinho is currently being forced to play an unfamiliar centre-back role at City because of injuries to Aymeric Laporte and John Stones, underlining his versatility and importance to Guardiola.
He arrived at City in 2013 from Shakhtar Donetsk and the popular South American has collected three Premier League titles, four League Cups and one FA Cup during that glittering period.
City secured his long-term successor in the summer when they paid midfielder Rodri's £62m buyout clause to bring him in from Atletico Madrid.
Fernandinho and his young family are settled in Manchester, though, and there is no suggestion he won't accept an offer to extend his time at City into an eighth year.
He is not involved with the current Brazil squad so can enjoy a rest until City's return to action in the Premier League against Crystal Palace at Selhurst Park on Saturday week.