When Thomas Lemar refused to join Arsenal, Alexis was forced to stay at the Emirates, despite his club agreeing a deal with Manchester City to sell the Chilean for £55million plus £5million in add-ons.
And the Daily Mail say Arsenal have real hope of signing Sterling, who has 34 worldwide caps, as he is open to a return to London and the chance to play more regularly under Wenger.
"When we started to speak with Arsenal in the last days before it was not impossible, they wanted to make a swap with Raz", Guardiola told reporters at the City Football Academy in Manchester.
"They talked to me and I said, 'no chance, zero chance, not one percent chance to make a swap with Alexis and Raz".
"This time it was not possible, but hopefully we have him here in the future".
"He is 22 years old, an English player and he has a lot of gap (potential) to improve".
With Sanchez out of contract at the end of this season, it has been speculated City could return with a reduced bid for the forward in January with Guardiola not ruling out a move. "At first I thought that he had hit him in the hip, but then I saw clearly that he got him with the face", he said before explaining how he coped with the sudden call.
⚽ Premier League first goalscorer special ⚽.
Arsenal are still keen on acquiring the services of Manchester City winger Raheem Sterling - following a failed attempt during the summer transfer window. We just have to reflect that the transfer window in England will be closed sooner than in Europe.
"But we have other players that can play in that position".
The City manager also adressed La Liga president Javier Tebas's comments about their recent spending, as Guardiola revealed that he and City chief executive officer Ferran Soriano, spoke to Tebas.
He said, "These things are avoidable".
"I don't know what will happen in the winter time".