The Croatian international has scored 26 goals for the German outfit this season and 48 times in total since joining from Wolfsburg in 2012.
However, the arrival of Robert Lewandowski from Borussia Dortmund this summer has placed Mandzukic's long-term future in doubt.
"We don't know where [Mandzukic] is heading," he told Goal.com.
"He said publicly that he has no worries, is not afraid of competition. He will accept the challenge.
"They always say 'Bayern have a huge squad but are only allowed to play with eleven players'. Then injuries come and the whole discussion is finished. A lot of things adjust themselves."
A number of Premier League clubs are believed to be monitoring proceedings.