Guardiola believes the versatile 20-year-old is capable of playing as an attacking midfielder, a winger or as a centre-forward, but has even suggested his ability and understanding of the game would allow him to perform in any position on the pitch.
“Phil can play in five positions up front," said Guardiola ahead of City's game against Burnley.
“He can play in both attacking midfield [positions] in the pockets and he can play in three positions up front.
“There are players who play in one position and there are players who play football. Phil knows how to play football. If he played left back, he would play good.
“There are players who say I have play in this position, otherwise they don't play football.
“Phil is an exceptional player. He can play everywhere, not yet, but he is so young, in time he will get it."
Foden's contract was also up for discussion in the manager's pre-match press conference, following reports in the media that he is close to signing a new deal at City.
“I read in the newspapers how close they are, but I don't know," he added when asked to respond to the reports on Foden's future.
“I cannot deny, with his age and his quality, I am pretty sure the club and Phil will do everything possible to remain in the club for a long time.
“But, I don't know. I am not involved in this kind of thing."
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