They then jetted across Spain to the capital to hold negotiations with Real Madrid.
The pair are expected to travel to the UK in the coming weeks to test the waters with up to four Premier League clubs.
But Guardiola has categorically ruled out a move for the 20-year-old, even though club-record goalscorer Sergio Aguero is set to leave at the end of the season.
“With these prices it’s impossible – we cannot afford it,” said Guardiola. “That’s not going to happen.
“All the clubs struggle financially and we are not an exception. We have Gabriel Jesus, Ferran Torres, players in the academy and we can play with a false nine.
“I don’t know what will happen. Maybe we will not buy one. Today, there is more chance that we will not buy one.
“We have enough players in the first team and interesting players, and, with the world economics, it’s possible that we will not sign a striker for next season.”
City withdrawing from talks will be a huge boost to United and Chelsea because the youngster has dreams of playing in the Premier League.
Meanwhile, Guardiola also spoke of Aguero’s departure after opted against offering the 32-year-old a contract extension.
“These decisions are never easy,” the Spaniard said.
“Maybe we are going to find a new player to replace him, but in terms of his numbers, it’s impossible.”
