City had been linked with a fresh, £200 million move for Mbappe over the weekend.
The Premier League side have tried to buy the World Cup winner on two previous occasions; Monaco rejected an approach in the summer of 2016 when he was still largely unknown outside of France, while in 2017 they were beaten to his signature by PSG.
Goal understands that City also monitored his situation in Paris this summer, hopeful that any UEFA sanctions over Financial Fair Play would force the Ligue 1 champions into a sale.
In the past week UEFA has reopened an investigation into PSG's finances, and it was subsequently reported that City are once again keeping a close eye on the situation.
But Guardiola moved to flatly deny the story at his press conference ahead of Tuesday's Champions League clash with Hoffenheim.
"That is not going to happen," he said. "Sometimes I don't understand where the news comes from. Manchester City aren't going to spend the money that Mbappe deserves, or that PSG deserves. PSG are not going to sell this kind of player to any other club in the world in the next years, I guess.
"That is not going to happen, Mbappe is not going to come here, we are not going to swap Raheem [Sterling] or another top player that we have.
"I don't understand where sometimes the news comes from, I don't understand it. People should be more respectful of PSG, respectful of Manchester City, for the players from PSG, for the players from Man City, they should have more respect.
"Of course I am the second person to know exactly which players are targets, which players I want to sell or something like that. But it is what it is."
City take on Hoffenheim having started their Champions League campaign with defeat to Lyon on match day one, and Guardiola insists the game in Germany is crucial.
"We have five finals to qualify [for the next round]. In the Champions League we don't have time to lose a lot of games. We missed the first one so we know the situation we are in. We have five finals, tomorrow is the first one."
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