With no source listed, I thought it was bullshit too but a quick Google search confirmed it. Heres the full quote.
Speaking at a charity golf event,
Guardiola admitted he was ready to sell Cancelo to
United whilst addressing rumors that Barcelona was also interested in the defender. He said: “I think they [Barcelona] have informed him very badly. He is far from reality.“The reality was that we decided that he had to leave and we didn't care where he was going, even if he wanted to go to United, which is our rival. There is his agent and the clubs agree. I won't say that they deceived him but that they misinformed him.”Guardiola added: “If Bayern doesn't want him, then he won't go there.”
When asked about the full-back’s future, the City boss said: “This is a matter of Txiki [Begiristain, Sporting Director], of City, of his representative, and of the club that loves him. I have no idea [why he didn't sign for Barcelona]. We didn't get any offers.”
After his exit was confirmed in January, there were rumors that Guardiola and Cancelo had a bust-up.
However, the 29-year-old strongly denied those claims, he told
Mundo Deportivo: “It's a lie that I had a fight with Guardiola, a complete lie. I didn't feel important to the team in recent games. I spoke to the coach and he agreed.
“I, the coach, and the club decided that I had to leave, that it was the best option for me. I like new opportunities and I have nothing against City.”