Manchester City were knocked out at the semi final stage by Real Madrid on Wednesday.
City enjoyed their best run in the competition this season as they made it to the semi finals to meet Real Madrid.
That ultimately ended in failure as a goal from Gareth Bale in the second leg at the Bernabeu saw them exit the competition on Wednesday evening.
It was the last chance for departing manager Manuel Pellegrini to enjoy success this season before Bayern Munich boss Guardiola replaces him in the summer.
The Catalan has arguably been hired to try and improve City’s fortunes in Europe and Parlour says the run this season will help him to that end.
“This will help him out, Man City being where they are as they’ll learn a lot,” Parlour told talkSPORT.
“Pep Guardiola with his experience as well, I know he hasn’t won it, he will be a manager who wants to push [for the Champions League.]”
“I think they’ll be a force if he brings in three or four players and keeps the players he’s already got.”
It will certainly be interesting to see who Guardiola decides o keep and sell when he arrives at the Etihad in the summer.
One man who looks destined to leave is midfielder Yaya Toure, especially considering his performance at the Bernabeu.
The Ivorian was lacklustre to say the least and given Guardiola has already sold him in the past, another sale is looking likely this summer.