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|Manchester City's Leroy Sane appears to be on his way out of the club. (Photo: AFP/Oli Scarff)|
The Germany international has 12 months left on his contract and has been heavily linked with Bayern Munich, with the City boss saying he would be able to leave if the club could find a buyer.
"Leroy has rejected to extend his contract," Guardiola told reporters on Friday.
"Everyone knows. If at the end of the season two clubs agree, he can leave. If not, he will leave at the end of his contract.
"The club offered two or three times and he rejected it."
Winger Sane, 24, has won the Premier League title twice at City since joining from Schalke in 2016.
However, he has not played for the first team since suffering a torn knee ligament in the Community Shield match against Liverpool in August.
"When we make an offer to a player it's because we want him," Guardiola said at his pre-match press conference.
"He has special quality. We want players who want to play with the club to achieve targets. He is a nice guy and I love him so much. I have nothing against - but he wants another adventure."
Guardiola said that David Silva and Claudio Bravo would stay at the club until the end of the extended season, having initially been due to leave at the end of June.
City, second in the Premier League, face Burnley on Monday.