Eric Garcia 19-year-old ended the last league campaign as the first-choice partner for Aymeric Laporte in central defence.
The 19-year-old has one year left on his contract and City have been trying to lead him to sign an extension amid links to a return to Spain with Barcelona.
“He has told us he does not want to extend,” said Guardiola.
“I would imagine he wants to play in another place.”
Eric Garcia made 19 appearances in all competitions for City last season.