According to 'Sky Sports', Manchester City are in talks to sign Athletic Bilbao defender Aymeric Laporte, who turned down the Citizens when Guardiola first arrived at the Etihad in 2016.
Barcelona, Manchester United and Chelsea have also expressed interest in the 23-year-old, who is Guardiola's favourite option to stregthen the back line due to Kompany's constant fitness issues and his lack of trust in Mangala.
The Premier League leaders are in the market for a new centre-back in the January window and it is understood negotiations with Athletic Bilbao are continuing on Tuesday afternoon.
After missing out on Alexis Sanchez to Manchester United this month, for whom they were ready to pay £20million, City have funds in reserve to spend on Laporte.