The report claims that United have the Spaniard as their top choice as their next manager ahead of Jose Mourinho.
Yet it is claimed that Guardiola has made clear that he wants his next club to be in the Champions League.
This is a clear blow for Chelsea who look unlikely to make the top four, while United are currently in fifth, and need to halt a two-game league losing streak.
They face Stoke City on Boxing Day followed by a big game against Chelsea days later.
Manchester City would look to have an advantage in regard of Guardiola's terms, but the condition also shows the current Bayern Munich coach in somewhat of a poor light, in that he is unwilling to take on a more challenging circumstance.
Perhaps he should try Leicester City?