The London Evening Standard says it is believed that he has made taking charge of a Premier League club his priority but he is set to snub a move to Stamford Bridge.
Chelsea owner Roman Abramovich has pursued Guardiola for the past 18 months and tried to convince him to join in the close season after Roberto di Matteo had led the club to victory in the Champions League.
The Russian multi-billionaire was hoping the former Spain international would take charge this summer and was looking to offer a salary worth £15million-a-year to convince him to move to west London.
Guardiola is respected as one of the best coaches in the game and Chelsea privately fear he has already decided to go elsewhere. The fact they have had nine different managers at the helm during the Abramovich era has not helped, especially as Di Matteo was fired only six months after lifting the European Cup.