The defending champions have registered victories in all five of their Champions League group games so far, including a dominant 3-1 win at City, who would need to better that result in the Allianz Arena to leapfrog them.
It looks an unlikely prospect, but Guardiola has been keen to emphasise how great a threat he thinks City pose.
The Spaniard said at his pre-match press conference: "Coming second in the group is not really an option for us. It is something we want to avoid.
"I have a lot of confidence in my team, but I also know how dangerous Manchester City are.
"They have incredible players - they can get three or four chances within a few minutes. So we have to really look out for that.
"My players have to really concentrate and be aware of the situation. We have a very big chance to be first in the group and that is what we have to aim for."
Bayern have full-back Philipp Lahm, who Guardiola has been deploying as a defensive midfielder, available again after he recovered from a thigh problem.
The coach is "optimistic" Mario Gotze will be able to feature as well despite picking up a knock in Saturday's match, while fellow midfielders Arjen Robben (knee) and Bastian Schweinsteiger (ankle) remain sidelined.