The 29-year-old, who joined Barca from Valencia in a £34 million deal last summer, is likely to be offered to Chelsea, who are in the market for a new forward.
Their top target Neymar looks set to snub the Blues to join Real Madrid, but Villa would be an attractive alternative, not least because he has experience of playing alongside Fernando Torres.
A source told the Sunday Mirror that Guardiola would be reluctant to sell Villa, but is ready to take a pragmatic approach in the transfer market.
'Ideally, he wants to keep Villa - especially after the impact he made in his first campaign with Barca. He sees David as a big player as his side push for more trophies next season,' the insider said.
'But he also knows that he may have to sacrifice Villa to finance incoming deals. And Manchester City and Chelsea would be very happy to buy Villa.'
The news comes after Arsenal chairman Peter Hill-Wood confirmed Barcelona had made initial contact about Fabregas, but had not yet made an offer.
'Ideally, he wants to keep Villa - especially after the impact he made in his first campaign with Barca. He sees David as a big player as his side push for more trophies next season,' the insider said.
'But he also knows that he may have to sacrifice Villa to finance incoming deals. And Manchester City and Chelsea would be very happy to buy Villa.'
The news comes after Arsenal chairman Peter Hill-Wood confirmed Barcelona had made initial contact about Fabregas, but had not yet made an offer.
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