The relationship between Guardiola and Sterling deteriorated.
The Spaniard wanted the 26-year old winger to leave Etihad this summer amid Liverpool rumours.
He has fallen down the pecking order since the arrival of Jack Grealish in the summer.
He has made just three Premier League starts this season and has also been linked with a move to Liverpool.
Earlier this month, Sterling expressed his desire to play for other European clubs in order to seek some more game time.
Sterling said: “If there was the opportunity to go somewhere else for more game time I would be open to it.
“As I said, football is the most important thing to me. Challenges that I have set myself from a young age and dreams as well.
“As an English player all I know is the Premier League and I’ve always thought you know maybe one day I’d love to play abroad. See how I would come up against that challenge.
“I’m not a person that’s going to complain. I’ve not tried to make it a bigger deal than it actually is. I get on with my work. Do what I need to do.
“And I’m just raring to go. Playing football matches regularly. Score goals regularly.”