City welcome the Bundesliga club this Tuesday in the first leg of the tie before travelling to Germany the following week for the second leg.
Speaking after his side's 2-0 Premier League victory against Leicester City at the King Power Stadium, Guardiola made it clear that he knows the quality that Dortmund possess.
"If one person in Manchester knows Borussia Dortmund, it is me," he stated. "I will not find one single player at their club who is without quality. They have incredible quality. Incredible.
"Over one or two games, they are able to do anything. I have incredible respect for what Dortmund have done. I know their quality.
"It's not just [Erling] Haaland of course, but Jadon Sancho, Marco Reus, Mo Dahoud, and [Mats] Hummels... I'm really impressed with the quality he has. When they can run, they kill you. The quality is there.
"We're going to prepare the game like we prepared [on Saturday]. We will try to be aggressive and try to win this game, then travel in one week to Dortmund and try to win the second game."
The boss also spoke about the importance of rotation and why he was particularly impressed with the win over the Foxes on Saturday.
Watch everything he had to say via the video above.