Sterling did not rule out playing for Real Madrid in the future in an interview with Spanish outlet AS, although he insisted he was “really happy” at City for now.
“The players are free to talk and say what they think,” said Guardiola, who was not concerned at suggestions the England winger could be looking for a way out of the Etihad Stadium.
“I repeat the same, it’s not finished, it’s not over. We appeal and we see what happens.”
Guardiola, whose side sit four points above third-placed Leicester in the table, confirmed Sterling will miss Saturday’s game at the King Power Stadium, but is making good progress following a hamstring injury.
David Silva will also sit it out after being forced off during Wednesday night’s home win against West Ham due to a minor knee problem.
Guardiola said Leroy Sane needs a little bit longer before his return to action after his recovery from a serious knee ligament injury sustained in the Community Shield against Liverpool in August.