Goal Brazil said Alves, 34, has been offered €7m (£6.2m) per year in wages by the Blues, more than the €5m City are willing to pay the right-back.
Juventus have agreed to release Alves from his contract, with the legalities of his exit expected to be settled this week.
The Brazil international has already agreed a two-year deal with City and the free transfer will be announced once his exit from Juventus is confirmed, according to the Sun.
Alves spoke warmly of Guardiola on a Brazilian talk show but refused to confirm if he was moving to Manchester.
The full-back worked with Guardiola before at Barcelona, with the pair winning three La Liga titles and two Champions League titles together at Camp Nou.
"I don't know what's happening. I've left the work to my agents, and they've said they'd talk to me once they found a resolution," Alves was quoted as saying by the Daily Mirror.
"If I go, it'll be without any conflicts, without any problems, as opposed to what's being said. Everyone knows my admiration for Pep Guardiola."
City are without a senior right-back after the club released both Pablo Zabaleta and Bacary Sagna at the end of the season.
Guardiola is also reported to be interested in signing Tottenham right-back Kyle Walker, although the two clubs remain apart in their valuation of the England international.
Spurs are holding out for a fee of £50m for the defender, who has four years left on his contract.
Walker, 27, reportedly wants to join City after being left out of the Spurs team by manager Mauricio Pochettino in crucial fixtures towards the end of last season.
Monaco and France left-back Benjamin Mendy is also on City's radar.