On Friday evening, it was revealed that the Citizens had been handed a suspension from European competition for the next two seasons having committed offences in relation to UEFA's club licensing and Financial Fair Play regulations.
City have already revealed that they appeal the decision, although as it stands, the Manchester giants will not be eligible to take part in the Champions League until the 2022-23 campaign.
According to The Telegraph, Guardiola could decide to walk away from his position as head coach should the ban remain in place.
The 49-year-old has been in charge of City since July 2016 but his current deal at the Etihad Stadium will expire at the end of next season.
This term, the reigning Premier League champions are 22 points behind runaway leaders Liverpool, who are seemingly closing in on their first league title for 30 years.