The Spanish tactician has a midfield void to fill at the Etihad Stadium having sold Fernando to Turkish side Galatasaray at the weekend.
And reports in Spain suggest Guardiola is plotting a move to take 29-year-old Busquets to the Premier League ahead of the August 31 deadline.
The pair spent four years together at the Camp Nou when Guardiola guided the Catalan giants to 14 major trophies and Busquets was an instrumental member of his plans during that time.
Barca fans are still reeling from the world record £200million sale of Neymar to Paris Saint-Germain and the club's officials will no doubt not want to upset them further by offloading another key player this summer.
Therefore, that is likely to be a major obstacle Guardiola will have to overcome if he wants to pursue a move for Busquets further.
A more realistic deal could be to sign his Barca team-mate Sergi Roberto, who is believed to be interested in a move for regular first-team football.
However, Guardiola must weigh up whether the 25-year-old is worth his £36million release clause before moving for him.