Pele, who is regarded as one of the greatest players of all time, won an unprecedented three World Cups with Brazil and was crowned FIFA's Player of the Century in 2000.
Tributes have since poured in for the former Santos star, and outgoing Brazilian president Jair Bolsonaro has announced a three-day period of mourning in memory of the legendary striker.
Guardiola is one of the latest names to pay tribute to Pele and believes that the Brazilian's footballing legacy "will be eternal".
Speaking at a press conference on Friday, via mancity.com, Guardiola said: "I send on behalf of Manchester City, the biggest condolences to his family and friends.
"Football is football thanks to these types of people, players and human beings.
"I think Neymar said it, before the No.10 was just a number and after it became something special - every top player wants to wear it for their team. What he has done for football is there and always will remain.
"He didn't just win three World Cups - it was a new thing when he came up. I was not born when he was playing but it's like a good movie, no?
"The legacy after many years is still there. We are still talking all these years later. Pele, [Diego] Maradona, [Johan] Cruyff, [Lionel] Messi, [Franz] Beckenbauer, Cristiano Ronaldo - these players will be forever, will be eternal.
"They have done many things for many years, and these types of players make our business, our work, our job a better place."
Guardiola added: "What he produced; we have seen with the World Cup one team can change everything for a country of millions of people.
"There is not another show or event that can create this type of emotion. These exceptional players produce this emotion for lots of people.
"When I was in the academy at Barcelona I had a physio who was in love with Brazil and Pele. And after when I was nine or ten, I started to watch some clips.
"Now I realise he was so strong and could do everything. These type of players, if he was playing now, he would adapt to the rhythm and the pace.
"He was so intuitive and in skills and mentality, he could play in every generation. Everyone has their own greatest."
The Spaniard continued: "For Argentina they might save [Alfredo] Di Stefano, Maradona or Messi. I always say Messi is my favourite because I worked with him - but I understand people choose another one.
"What is for sure is all of them make an incredible contribution to our football and make emotions for people.
"That is the nicest thing a player can do - and they did it quite regularly, almost every game. That is so nice."
Pele's daughter Kely Nascimento broke the news of his passing on Instagram, while a statement on Pele's official account shortly followed, which read: "Inspiration and love marked the journey of King Pele, who peacefully passed away today.
"On his journey, Edson enchanted the world with his genius in sport, stopped a war, carried out social works all over the world and spread what he most believed to be the cure for all our problems: love.
"His message today becomes a legacy for future generations. Love, love and love, forever."
Pele's body will be laid to rest when his funeral takes place on January 2 at the home of his former club Santos.