Pep Guardiola might be managing Man City in the Europa League, warns Alan Shearer

Alan Shearer has warned Pep Guardiola that he might end up managing a team in the Europa League next season, after Manchester City's struggles continued with a fifth home league defeat of the campaign on Sunday.

Marcus Rashford's goal handed Manchester United a 1-0 victory at the Etihad Stadium, closing the gap on fourth-placed City to a solitary point in the process, and - along with West Ham - the two rivals will do battle for a Champions League berth over the final eight matches of the Premier League season.

Guardiola will succeed Manuel Pellegrini in the summer expecting to be pitting his wits against former clubs Barcelona and Bayern Munich in Europe's premier club competition but Shearer is concerned that the Spaniard could end up leading City among the continent's second tier.

Alan Shearer has warned Pep Guardiola that he might end up managing in the Europa League next season

Guardiola will succeed Manuel Pellegrini in the summer expecting to be involved in the Champions League

But Pellegrini's current team face the very real threat of failing to qualify for Europe's elite club competition

Speaking on Match Of The Day, the former Newcastle striker said: 'Do you think he's got a clause in his contract because I'm pretty sure he didn't sign up to take over a Europa League team. 

'He's signed up to take over a team in the Champions League. There's a big danger that Manchester City might not be in it.' 

Shearer's fellow ex-pro, Danny Murphy, was critical of City's recruitment policy in recent years.

He said: 'Big players are getting a bit older and haven't played as well. I'm talking about Silva - who's not been as productive, Toure is nowhere near the levels, Kompany has hardly played, Aguero has had his mid-season injury which he tends to have most years.

'The recruitment and the players they've brought in have not been good enough in the last two years.'

Meanwhile, Sportsmail columnist Jamie Carragher thinks Guardiola will need to make 'seven or eight' new signings this summer if he is going to spark a Premier League title challenge with City next season.

Defeat to United left City 15 points off top spot and Carragher believes the Spaniard will be thinking about wholesale changes to the squad he inherits from Pellegrini when he arrives in England, saying the millions of pounds spent in assembling one of the Premier League's oldest squads has bordered on 'mis-management'.

Meanwhile, Danny Murphy has slated the recruitment strategy in place at the Etihad over the past two years

Speaking on Sky Sports, the former Liverpool defender said: 'Pep Guardiola will be watching that today and I think he'll be thinking 'initially I need three or four players'. I think they might need seven or eight.

'It's the age of the squad. With the money that's been spent, how they can have an age profile like that is probably mis-management. From people above Pellegrini.

'They brought players in to win now - which they did, fantastically well - but even the world class players they've got now maybe don't need replacing but they need help.'

Murphy said: 'The recruitment and the players they've brought in have not been good enough'