Mendy, aged 23, joined Monaco from Marseille last summer.
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City have not yet confirmed the deal.
And, as Guardiola made the hunt for two world-class full-backs a summer priority, City are tipped to complete a deal for about £51m within days.
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Mendy would become the Premier League club's fourth major signing of the summer and take their spending to more than £175m, following the recruitment of England global Walker, Portugal midfielder Bernardo Silva (£43m) and Brazilian keeper Ederson Moraes (£35m).
The French champions seemingly want City to match the fee they paid Tottenham for Kyle Walker as they feel Mendy is a better player and four years younger than the England International.
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