The two teams will face-off in the round of 16 this month.
The fact that City have never won the title simply adds to the difficulty of achieving it, says Guardiola.
He explained, “That's why it is so difficult to win it. And in 100 and more seasons of history for Manchester City, it was 100 seasons of failure – that is not true.
"There are many incredible players that made our fans happy, and (times when) our fans enjoyed part of the season. I know the people say 'You are good' or 'You're not good enough.' I accept it. I want to win the Champions League, I dream and will enjoy the games against Real Madrid, to see what I can do.
“And this process, the two weeks before, will be the happiest moments of my profession, to imagine what we can do to beat them. If we don't beat them, then the chairman will come, or the sporting director, and say 'It's not good enough, we want the Champions League, I'm going to sack you'."