City, the defending Premier League champions, have had an uncharacteristically difficult campaign. They have lost seven of their 24 league matches, conceding 35 goals along the way, and currently sit fifth in the table.
However, Guardiola's side remains in a much stronger position than United, who are enduring a miserable domestic season.
Manchester United, currently languishing in 13th place, have suffered 11 league defeats and lost their last three Premier League matches.
While they have shown promise in cup competitions - performing well in both the Europa League and FA Cup - their league form has left much to be desired.
"Maybe we'll finish 14th-15th but we are fifth, we are not dropping like other teams that had success in the past," said Guardiola.
Guardiola's remark comes ahead of City's upcoming fixture against Newcastle United at the Etihad Stadium on Saturday.
With City eager to close the gap on the teams above them, a victory will be crucial in their bid to climb back into the title race.
Nico O'Reilly has been cleared to face Manchester United in Sunday's Manchester derby at Old Trafford, with manager Enzo Maresca confirming the defender has recovered from the issue that forced him out of the warm-up against Coventry last weekend.
Michael Carrick believes Benjamin Sesko gives Manchester United a different attacking dimension after the striker scored again in their impressive 4-0 Champions League victory over Sabah at Old Trafford on Thursday.
Manchester United marked their return to the UEFA Champions League with a comfortable 4-0 victory over Sabah at Old Trafford on Thursday night.
Erling Haaland has reached another major Champions League milestone, but the Manchester City striker insists he is far from satisfied.
