Guardiola's European Champions visit Manuel Pellegrini's side for tomorrow's Group D clash, and the Spanish boss has tipped City to get through the group that also contains Viktoria Plzen and CSKA Moscow.
Guardiola also feels that the wealthy Citizens will establish themselves as a serious force on the European stage once they progress to the knockout stages.
"The last two seasons they didn't get through [the] first stage but I am 100% confident they will get through to the next round," Guardiola told reporters.
"Manchester City are one of the biggest clubs in Europe. I think they have made big steps forward. My impression is if they qualify, Manchester City will be one of the toughest teams in the next round.
"The same happened with Borussia Dortmund last season. They qualified for the next round and went on to the final."
Both teams got off to winning starts to their Champions League campaign in the first round of games.