Spain Under-21 international centre-back Garcia - who is now in the final 12 months of his City deal - has played in eight of the club's 12 games since the restart and was offered an extension.
But ahead of City's Champions League last-16 second leg against Real Madrid on Friday, Guardiola said: "He announced to us that he doesn't want to extend his contract with Manchester City.
"He has one more year and after that, he doesn't want to extend. We want it but he doesn't want to, so I imagine he wants to play in another place."
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