Guardiola said he would rather be on top of the table in the Premier League, but is happy with City being within touching distance of leaders Arsenal.
City, who visit Nottingham Forest for a Premier League clash on Saturday, are two points below Arsenal in the English top-flight.
In the Champions League, fourth-placed City are five points below Arsenal, but remain on track for a direct entry in the round of 16 with a top-eight finish.
"I’d prefer to be 10 points clear of everyone, but it is what it is. Arsenal’s doing really well, but we are there... we’re still in the end of December," Guardiola said in an interview published on Friday.
"The Champions League, we are up there, and the Premier League we are there, semi-finals of the (League Cup), we start the FA Cup soon.
"Some important players are coming back, so let's (see) step by step, game by game, what's going to happen."
Midfielder Rodri, who has not played since early November due to a hamstring injury, may be available for the Forest trip, Guardiola said.
"Rodri is much, much better. Available or not, we’ll decide today," the manager said.
"(Jeremy) Doku and John (Stones) still aren’t there, but soon they’ll be back."
