The England international has struggled with injuries since joining City from Leeds United during the close season and had surgery for a recurring shoulder issue to cast doubt over his participation in the Qatar World Cup starting on November 20.
Guardiola said the midfielder as well as club team mate and England right back Kyle Walker - who is also recovering after surgery for a groin injury - were feeling much better.
"Yesterday Kalvin was the second day he did a full training session with contact with us and he felt good," Guardiola told reporters after Saturday's 2-1 Premier League win over Fulham.
"Against Chelsea he will be on the bench, whether to play or not I don't know but he will be on bench. Kalvin is much better. I spoke with Kyle and he feels good too but his surgery was later than Kalvin, that's why I don't know."
The news of the duo's progress will come as a boost for England manager Gareth Southgate before he names his squad for the World Cup on Thursday.
Chelsea fullback Ben Chilwell will miss the tournament due to a hamstring injury while team mate Reece James has been ruled out for eight weeks due to a knee injury.
England kick off their World Cup campaign against Iran on November 21.
