MANCHESTER -- Pep Guardiola has dismissed suggestions that he will make drastic changes to his Manchester City squad in the summer.
City went out of the Champions League to Monaco on away goals earlier this week, prompting speculation that a large number of players could leave in the summer.
Eight players are out of contract in the summer, including midfielder Yaya Toure.
Toure was left out of the defeat to the Ligue 1 leaders, with his agent claiming he expects to leave at the end of the season.
But Guardiola told a news conference ahead of Sunday's game against Liverpool: "I am so happy with the squad.
"Speculation is normal when you are out of a competition. It happens everywhere, not just the Premier League and England.
"I have said many times I'm so happy working with the guys and how they try to do and their performances.
"We're going to improve a lot next season. A lot of these guys will be here next season."
He said managers needed to be responsible about the changes they made, adding: "You have to imagine a club... 16 players? They might have a contract and you have to pay their salaries.
"And to spend £40-£50 million on every player means you would have to spend £500m-£600m... it's impossible.
"We will try and improve the team but it's impossible [to do that much] with the way the transfer market is."
Guardiola said he had received a message from City chairman Khaldoon Al Mubarak following the defeat to Monaco.
Al Mubarak told Guardiola he realised how difficult it is to win the Champions League, and the coach added: "I know better than him how it works so when results happen, we are always going to take a decisions.
"I always feel that in the good moments and bad moments, especially in the bad moments, I realise his reaction. I am really impressed, I appreciate that a lot."
The City boss met owner Sheikh Mansour on the first team's recent short break to Abu Dhabi to discuss the progress of the club.
"I know the plan," he said. "We are thinking towards getting better.
"I want to be involved in that as much as possible and to help my team to make the next step, and I have more power than ever in my life as a manager.
"For me it's a big challenge and I want to deal with that, I want to see if I am able to do that."