On Saturday, reports began circulating that the former Barcelona boss had verbally agreed to take over from Manuel Pellegrini at the Etihad Stadium ahead of the 2015-16 campaign.
Guardiola has won back-to-back Bundesliga titles, but the coach is currently in the midst of his worst spell in two years at the Allianz Arena after the Bavarians lost their fourth match in a row against Augsburg this weekend.
Man City, meanwhile, have gone from Premier League contenders at the turn of the year to having to settle for a Champions League qualification spot following a heavy slump in results in 2015.
Barcelona’s 3-0 thrashing of Bayern last Wednesday reinforced rumours Guardiola would call time on his stint in Germany this summer, with Hamann suggesting he could be heading for England.
“A well-informed source sent me a text message saying that Man City talked to Pep Guardiola two months ago and he said no,” the former Bayern star has told Sky. “In the meantime there are new well-progressed negotiations going on.
“There is nothing signed yet but it is likely – in fact, extremely plausible – that Pep will be at Manchester City next season.”
If Guardiola is to leave Bayern at the end of the campaign, Tuesday’s semi-final second leg against Barca could be his last hurrah in the Champions League with Bayern due to the 2012-13 winners’ three-goal deficit.