Guardiola has been left shocked by Mahrez’s behaviour after failing to secure a deadline-day move to the Etihad.
And Starsport understands Mahrez’s vanishing act has now wrecked his chances of joining City once and for all.
The Algerian winger, who yesterday was AWOL from training for the fifth time in a week, has missed Leicester’s last two games.
Guardiola was considering making another bid to land him in the summer as he looks to add another attacking star to his squad.
But the Spanish boss is said to have major concerns about the character of Mahrez and will now look elsewhere.
A club source said: “The manager loves him as a player, there is no secret about that, but what he’s seen in the last week or so has given him huge doubts about what sort of person he is.