Reports over the weekend claimed City were lining up a £40million move for the German international as they look to bolster their goalkeeping options.
City are believed to be in the market for a new goalkeeper after Joe Hart lost his place to Costel Pantilimon for the last six Premier League games.
Neuer has established himself as one of the best keepers in the world after impressing for club and country over the last few years.
When asked ahead of Tuesday's Champions League meeting between the two sides if City could land Neuer, Guardiola replied: "No chance."
Hart, meanwhile is set to start against Bayern on Tuesday and City boss Manuel Pellegrini has called on the England goalkeeper to focus on the future and prove he deserves his place back in the starting XI.
"For him, it's a very important game and he must not think about the past, but think about the future," said Pellegrini.
"I'm absolutely sure and I trust in him."