The Portugal international, 29, is on loan at Barcelona after spending the second-half of last year on loan at Bayern Munich following a fallout with the City boss.
Barca are hoping to make the deal permanent this summer, with SunSport revealing that Arsenal are also ready to swoop for the full back.
Reports suggested Guardiola was furious with Cancelo’s reaction to being dropped during City’s Treble winning season.
The two had a bust-up after Nathan Ake and Rico Lewis were picked ahead of him for three games running.
But Cancelo blasted: “Lies were told. I’ve never been a bad team-mate and you can ask either Ake or Rico.
READ MORE IN FOOTBALL
“I don’t have any superiority or inferiority complex towards them.
“Man City were a bit ungrateful to me when they said that, because I was a very important player in the three years I was there.
“I never failed in my commitment to the club and always gave everything – I remember a time when I was robbed and attacked and the next day I was playing at the Emirates against Arsenal.
“These are things you don’t forget. I left my wife and daughter alone at home, terrified. People will only remember this because Mister Guardiola has much more power than me when he says something, and I prefer to keep to myself.