England winger Sterling hasn’t played since last month’s 2-1 win over Burnley, but trained successfully with the squad on Thursday and should be fit for selection.
Fabian Delph is also back in training, meaning Vincent Kompany (knee) is the only injury absentee.
Guardiola said: “Sterling is much better, yesterday he trained good, hopefully he’ll be fit for the game. Fabian trained yesterday, all of them are good, no problem.”
City will be without suspended trio of Sergio Aguero, Fernandinho and Nicolas Otamendi for the game though.
The Blues are looking to return to winning ways following defeat against Chelsea last weekend and drawing in their final Champions League group game against Celtic in the week.
Despite the mixed results, Guardiola maintains the form of the team is what matters most.
He added: “I am a coach for the results, of course, but I want to feel that my team is playing well. Sometimes you deserve to win and you’re able but sometimes that happens.
“Always I am focused of the way we play, not always the result. If we play how we played against Chelsea/Celtic we are going to do good things.”
Guardiola is also wary of a different Leicester team emerging now they have secured qualification to the Champions League last 16 after a tough first three months of the league campaign.
He added: “The Premier League is tough, sometimes it can happen.
“What I saw with Leicester they remain a very good team, I have a lot of respect for Claudio - what happened last season was amazing, in the way they did it and what they did.
“Sometimes now they are in UCL, they were first in their group stage, maybe the players were so focused on UCL, sometimes you can’t focus as much on Premier League.”
