The central defender is out of contract at the Etihad this summer and could return to his hometown city, where he left to join City back in 2017.
Guardiola told reporters, in quotes carried by Diario AS: “We will see what happens at the end of the market. I do not think he will sign a new contract with us.
“I am quite sure that he will leave at the end of the season because now, in this market, it depends on the other clubs.”
Garcia started seven matches for City after the return of English football last June last season but he has been limited to just two Premier League starts this campaign, and none since October.
The Catalan-native has fallen down the pecking order following the arrivals of Ruben Dias and Nathan Ake at the Etihad Stadium this summer.
Reports have drawn parallels between Garcia and that of Gerard Pique – who left La Masia’s youth academy due to mismanagement and joined Manchester United, before returning to the Camp Nou and enjoying a long and distinguished career at the club.
The Blaugrana currently have Ronald Araujo, Clement Lenglet, Gerard Pique, Samuel Umtiti and Oscar Mingueza in the position.