The 33-year-old remains a key player for Barcelona, making 28 appearances in all competitions during the 2021-22 campaign, but he has entered the final 18 months of his contract at Camp Nou.
According to El Nacional, Guardiola believes that the Spain international still has a number of years left at the top level and is keen to bring his former player to the Citizens.
The report claims that Busquets could be handed a ‘golden retirement card’, with the deal including the chance to play for City Group-owned New York City FC in the latter stages of his career.
The midfielder has made 657 appearances for Barcelona in all competitions, contributing 16 goals and providing 42 assists since debuting for the Catalan giants in 2008.
Meanwhile, he has won eight La Liga titles and three Champions League crowns during a glittering club career, in addition to the World Cup and European Championship with Spain.