Grealish has flourished out wide since joining City at the start of the 2021/22 season.
Before that, at Aston Villa especially under Dean Smith, he played more centrally as a No.10.
Guardiola opted to select him as a middle man on Wednesday and the Brummie received plenty of plaudits for his performance in the 3-0 victory over Nuno Espirito Santo’s side.
The manager praised him after the game and reiterated his delight as he faced the media before the Crystal Palace encounter.
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“He has attributes to play there – maybe it was my mistake to play him as winger,” he joked.
“At Aston Villa with Dean he started from the left-wing position and would go more inside.
“Here he has more of a fixed position, more in the places. But he can adapt perfectly in both positions.
“I know he likes playing in his position. We have a lot of needs right now and of course with and without the ball, his impact on the game was really, really good.”
Watch the manager’s media briefing in the video player above.