Hart has been told by Guardiola he is free to leave the club.
He will be replaced at the Etihad by Claudio Bravo, who is on his way to England to complete his move.
The Chile stopper is poised to join from Barcelona in a £17m deal in the next few days.
Bravo is considered to have better distribution that Hart, who has recently dropped to third choice behind Willy Caballero after the arrival of Guardiola.
Barcelona will replace Bravo with Ajax’s Jasper Cillessen who will not be allowed to move until after the Dutch side’s Champions League playoff against Rostov tomorrow night.