Rice was heavily linked with a move to Man City last summer, and the Citizens, at one stage, were believed to have been the favourites to sign him from West Ham United.
However, Arsenal ultimately secured a deal for the England international, who captained his country in their friendly with Belgium last week.
The 25-year-old has been a vital player for the Gunners this season, featuring on 39 occasions in all competitions, scoring six goals and registering seven assists in the process.
Guardiola said that «all the teams in the Premier League would have signed Declan Rice» ahead of Sunday's huge contest between Man City and Arsenal at the Etihad Stadium.
«Sometimes here we have many players we wanted and they didn't decide to join us,» Guardiola told reporters. «He's not the first one who we wanted who didn't join us. We have a long list.
»Basically, they don't want to come or the price or whatever, so it could not happen. He made his decision, a good one, and good luck. All the teams in the Premier League would have signed Declan Rice.
«He's an international captain for the national team of England and a young player playing a lot of games regularly. That's why Arsenal pushed the way they pushed.»
Rice has also insisted ahead of Sunday's title showdown that his team must head to Manchester with the desire to secure all three points against the reigning champions.
«We have got to go to the Etihad, which is going to be really tough, but if you want to get past that barrier of Arsenal being labelled stuff, you have to go there and win,» he told reporters.
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