City face Leicester at the King Power Stadium on Saturday night and Vardy has proved a pest for Guardiola's side in the past.
Asked at his pre-match press-conference on Friday why Vardy thrives against City, Guardiola said: "We play 40 metres in front so it's perfect for him.
"Vardy scores goals against us and all the teams. Because even in the box and in the final third, he is one of the best strikers I have ever seen.
"Intensity and high pressing, many things he is an exceptional player."
Guardiola was also very complimentary about Leicester as a whole, who sit third in the Premier League table.
"I said before the home game, how impressed I am (with Leicester).
"They have incredible organisation, good scouting, they know what they have to do.
"It's nice to see teams play like this. It's good for English football to have managers like this."