The Spanish coach knows that his side have no chance of defending their Premier League title. Liverpool are the runaway leaders in that race.
But Guardiola knows his side can lift Europe's biggest prize. First they face a round of 16 clash against Real Madrid.
"We played really well this season," Guardiola said of their performances this season in an interview with Sky Sports.
"In the games we lost we played really really well, and the hunger is not the reason why [we lost].
"We work harder than last season when we won all the domestic trophies in this country.
"I want to win the Champions League. I dream and will enjoy preparing games games against madrid, to see what we can do.
"This process, these two weeks, are the happiest moments of my profession — looking at what we can do to beat them."