Manchester City gave up on Dani Alves transfer when they discovered that PSG offered him almost twice of what they were willing to pay.
It is believed that PSG offered him a two-year contract worth a total of £25m in wages [£230k a week] as he is a free agent after being released by Juventus.
The 34-year-old is expected to be unveiled at a media conference in Paris later on Wednesday.
Manchester City believed they had a deal agreed with the Brazilian, thereby expecting him to travel with the squad to Houston on Monday.
However PSG contacted his representatives over the weekend and disrupted his agreement with City.
Manchester City were willing to pay only around £6m a year [£115k a week] for Alves who is expected to be a backup for Kyle Walker at City.
Guardiola will have to look at other alternatives for the position.