City are braced to surrender their Premier League crown to Liverpool this season with the champions trailing the leaders by 22 points with 13 matches remaining.
"You say the season is a disaster but if you win the Champions League it will be exceptional. Why?"
City have lifted five major domestic trophies since Guardiola took over in 2016 - including two EPL titles and a historic domestic treble a year ago.
The Premier League side have historically struggled to advance into the latter stages of the competition and face a mammoth task to do so this year with Real Madrid their opponents in the first round of the knockouts. "It's hard to win it", he added.
Can Pep finally end his poor run in the Champions League?
"I'm dreaming of it and I'm excited about preparing for the game against Madrid for the next two weeks".
"If we don't beat them, OK, come the chairman or the sport director and say, "It's not good enough, we want the Champions League, I'm going to sack you".
"OK, (I'd say), "Thank you, it was a pleasure".
Despite reports that there is a break clause in Guardiola's deal that would allow him to leave City this summer, the manager has repeatedly insisted he will see out his contract, which runs until June 2021, and has dismissed talk of a move to Juventus.
One of the reasons why Manchester City chiefs hired Pep Guardiola is experience in the Champions League having won the title twice with Barcelona. But Guardiola is adamant that the only way he will depart City before next season is if he is sacked.
Guardiola's men will take on Real Madrid in the Champions League round of 16 first-leg tie on February 26.
Argentine superstar has never played for any other club except Barcelona where he has won all the trophies in football with only the FIFA World Cup missing in his cabinet.
Manchester City are already in the final of the Carabao Cup and the fifth round of the FA Cup as the possibility of them retaining their Premier League title is not certain.