Manchester City were reported to have pulled out of a bid for Mahrez, who won the Premier League with Leicester in 2015-16, after making a final cash-plus-player offer worth up to £65 million, according to Sky Sports.
City have lost influential Germany winger Leroy Sane for at least six weeks with an ankle injury and with the club competing on four fronts Guardiola suggested he may need reinforcements.
“Right now, it’s the same as (Alexis) Sanchez, it’s not the place to talk about it. It’s so difficult,” Guardiola said on Tuesday when asked about Mahrez.
“If things are not possible, then nothing is going to happen. We don’t have too much and we play every three days. We have to find solutions.”
City paid a club-record record fee of £57 million for young French centre-back Aymeric Laporte from Athletic Bilbao, whose deal was confirmed on Tuesday.