Despite an impressive debut season in Spain, Barcelona decided to part ways with Gundogan after the club struggled to sign new signing Dani Olmo due to the club’s financial problems.

Gundogan was one of the club’s highest-earning players and his free transfer will help Barcelona meet La Liga’s spending restrictions.

“I am leaving in a difficult situation, but if my departure can help the club financially, it makes me a little less sad,” Gundogan wrote on Instagram after the announcement.

Gundogan added that he was “looking forward to helping my teammates in the new season” but was “grateful” to have spent 12 months at Barcelona.

Guardiola said ahead of Ipswich Town’s visit to Manchester on Saturday that the chance to re-sign the midfielder came out of the blue.

“It was a complete surprise, unexpected,” Guardiola said.

“We had no doubts when the possibility of re-signing him was raised and we are extremely pleased to have him back.”

Gundogan played 82 international matches for Germany and announced his retirement from international duty after the country was knocked out of Euro 2024 in the quarter-finals by Spain.