Since the summer, Foden has made an impact in a pre-season friendly against Manchester United and helped England win the Under-17 World Cup, for which he also picked up the award for the best player of the tournament.
However, rather than loaning out the 17-year-old, Guardiola wants to keep the youngster in and around his first-team squad with a view to handing him a debut later in the season.
The 46-year-old is quoted by the Manchester Evening News as saying: "He's training with us. He's not going to move this season. No loan in January.
"We feel we need him. Maybe he's going to play. Maybe he'll help us in the future to achieve what we want."
Foden has been tipped to be fast-tracked into the England Under-21 setup as early as March.