The striker has stayed behind in the UK and not travelled with the City squad for their pre-season tour in the US as a move to Leicester edges ever closer.
Wilfried Bony, who spent last season at Stoke, also looks to be on his way out, but Guardiola insists the only reason he is absent from City’s American tour is due to injury.
While also admitting City have placed a buyback clause in Iheanacho’s proposed transfer.
“It was/is an honour to work with him because it was not easy for him because I did not give him a little opportunities,” Guardiola said of Iheanacho. “His behaviour, I’ve never saw a guy like him (before).
“He is close to making a deal, a transfer and he decided to stay in Manchester. Maybe next week or the next 10 days he is going to finish.
“We have an option to have the opportunity in a few years to bring him back.
“But he’s a young player and we believe he deserves to play. He needs to play at that age and that’s why him, the club and everybody, we decide what’s best for him.
“Bony is injured. If he wasn’t injured, he would be here but he had a little problem. It’s nothing important and serious, but he is recovering in Manchester.”