Aguero was already seen as a top striker at City before Guardiola took over.
But Lee believes that his overall performances and scoring contributions have gone up another notch since Guardiola became his boss.
Aguero has 252 City goals, making him their leading goal scorer.
"Sergio is simply remarkable," the ex-City frontman told the club's official website.
"When Pep Guardiola first came to the Club, he was an out and out goalscorer but now he is an out and out player who scores goals.
"Sergio has got everything. He is a very good finisher, he is so clinical, he is the right size and build for a striker and he has got pace. I thought he was possibly a bit on the wane when Pep arrived but the manager shook him up and he has got him playing like a world-class striker he is.
"And if you look at the way he scores his goals they are not all simple. He can also score exceptional goals and he's an amazing talent. Would I have liked to play alongside Sergio? No, as he would have got all my goals!
"Seriously, I would have absolutely relished playing with him. I found that if I was playing with great players it was made very easy for me as it was with amazing players like Colin [Bell], Neil [Young] and Mike [Summerbee]. Sergio is something special too."