The full-back was left out of City's squad for the 8-0 thrashing of Salford City in the FA Cup at the weekend and the coach will not stand in his way as he seeks a move abroad - even though he thinks he could still perform at the top for years to come.
Guardiola said: "He is an incredible player with his incredible physicality. When he is focused he is unstoppable as a right-back. He’s a top-class player.
"If he is fit he can play one, two, three, four more years as a professional. I have never seen a player with these physical conditions in my career.
"But if he wants to explore (other options), the club is going to explore, and he has to decide, not me. It’s not my decision."
It is not clear if Walker will leave during this month's window and Guardiola did not comment on whether he will play for City again while his future in uncertain.
The manager said: "It depends on him. The transfer window will finish when it finishes and I don’t know what’s going to happen."
Guardiola was also pleased to see Jack Grealish score his first club goal since December 2023 in the FA Cup victory after he publicly challenged the England international to show him more in training.
He said: "Of course, I’m really pleased. I want the best for my players, all of them. I want them to perform well.
"But, at the end, they have to deliver. It’s not only Jack, absolutely not, but I saw him in the year of the treble, for example, when he was a main player for us.
"After that he played less and after that there are two options – think it’s me or think about what you can do better. This is the reality."