Otamendi, 32, made 39 appearances for Manchester City in all competitions in the 2019/20 campaign in the absence of first-choice centre-back Aymeric Laporte.
However, according to a report by Portuguese news outlet A Bola, the Argentine defender's performances didn't convince Guardiola, who has decided to allow him to leave.
The report also claims three European clubs are interested in securing his services - Lazio, Valencia and FC Porto - with the Portuguese club leading the way.
Jorge Mendes keen to orchestrate Nicolas Otamendi transfer
Otamendi's agent, Jorge Mendes, is reportedly keen to take his client back to Porto, a club he once played for. For his part, Otamendi is also keen on turning up for the Portuguese powerhouse as they can offer him Champions League football - something that Valencia cannot.
However, a potential stumbling block for the move is said to be Porto's inability to match the defender's wage demands. The player earns €7m a year, which is a number that the Portuguese club cannot afford.
As a result, Otamendi has reportedly asked for Manchester City to compensate his wages until his contract runs out in 2022. A resolution is expected to be reached between the player and the club as all parties involved want to see a move materialise this transfer window.
For their part, Porto are also weighing up a medium to long-term contract for the Argentine defender in order to help balance their books while affording a large chunk of his wages.
Staying at the English club and seeing out his contract doesn't seem to be a viable option following the signing of Bournemouth stopper Nathan Ake. Moreover, the Premier League runners-up are said to be in the market for yet another marquee centre-back to shore up their defence, with names like Napoli's Kalidou Koulibaly and Atletico Madrid's Jose Jimenez linked with a big-money move.
Published 14 Sep 2020, 19:18 IST