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The 18-year-old has been eased into the first team over the past two seasons and scored his first Premier League goal on Saturday, heading home the winner from close range as City beat Tottenham 1-0.
It was his 35th appearance for the Club and he once again impressed with his technical quality and ability to read the game.
And ahead of Wednesday’s crucial derby, Guardiola says he has no doubt Foden can handle the occasion if selected.
“He’s ready,” Guardiola said. “I don’t know the importance to be a Man City fan but he is going to help a lot and will be ready.
“We will see, he will have to dream tonight.”
Wednesday’s game looks set to be a hugely significant juncture in what’s turning out to be one of the closest title races in years.
Top spot has changed hands 27 times, and with four matches remaining, City sit two points behind Liverpool with a game in hand.
The equation for City is simple: win all four and we become the first side since 2009 to retain the Premier League trophy.
Guardiola admits a game of such magnitude brings tension, but says his players need to use the pressure to produce their best football.
“Tension is there and its necessary,” he said. “The pressure is necessary to complete these kind of games.
"Everybody knows we are going to play forward and try to focus on the target of what we need to do.
“Today we spoke a little bit on how to beat them, players who played a lot of games in the last week. We will go through specifics tomorrow in the morning.”
City have a fine recent record at Old Trafford, winning five and drawing one of the last seven games there.
And Guardiola says he has faith in his side to extend our sequence of positive results.
"We did it in the past, I don’t know what’s going to happen tomorrow but we will do our best to do it again," he said.
"I like my team, doesn’t matter what happens tomorrow.
"The players know the importance of tomorrow. You always have to understand the situation. If you lost the last game 4-0 and being told something not good things about the performance, I know exactly what our reaction would be from our players, and that is what is going to happen tomorrow.
"We accept that, that is the challenge."
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