Guardiola said he expected the German international to leave the club at the end of the season, or next summer. The attacking midfielder has been sidelined this season with a knee ligament injury sustained back in August.
He has been heavily linked with a move to Bayern Munich.
"Leroy said he doesn't want to extend his contract," Guardiola said.
"It means he wants to leave. So that will happen this summer or at the end of his contract.
"The club offered two or three times and he rejected it. He wants to play at another club."
Sané, 24, arrived at City from Schalke 04 in 2016 following a deal worth
In 134 appearances for the
City's Catalan manager said he was disappointed to see the player go.
"When we make an offer to a player it's because we want him. He has a special quality that is difficult to find."
"We tried before his injury and now and he has other wishes. We want players who want to play with the club to achieve targets," he added in a press conference before Man. City's game against
"We respect him. He is a nice guy, a special player and I love him so much. I have nothing against him - but he wants another adventure.
"We will help him until the last day he is here."
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