And he believes they could make the difference against Eddie Howe’s talented and ever-improving side.
The game kicks off at 20:00 (UK) and is the first home match since City won the FA Cup at Wembley, the Champions League in Istanbul and the Super Cup in Athens - a glorious period in the Club’s history.
Newcastle finished fourth last season in the Premier League, meaning they qualified for the Champions League for the first time in 20 years - and they also reached the final of the Carabao Cup to further underline their growing reputation as a major force.
They started the new season with a fine 5-1 win at home to Aston Villa, meaning Saturday’s game is eagerly anticipated, with two of the best teams in England going toe to toe.
Guardiola says his players are ready for the game against a side he believes are “extraordinary”, but called on the City fans to make as much noise as possible in a bid to ratchet up the atmosphere.
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“Of course we are ready. Of course,” Pep told journalists at his pre-match media conference.
“At the end, we need these types of challenges.
“When we won what we won, we are the team who everyone wants to beat. We need these difficulties for many many reasons.
“Right now for the many important injuries we have, the calendar to play with short recovery, this is a challenge to prove yourself again - see if you are able to do a step forward.
“It’s never easy in sport.
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“In football and in sport always there are problems, it’s how you overcome that defines if you are a good team or not.
“I never do that but we need our people more than ever, especially this season.
“We cannot be in the Etihad Stadium looking at how good because of what we have done and tomorrow we need them.
“8pm is a good time to take a beer after game. We need them from the first minute until the end, their support, because we play an extraordinary team that continue to do really well.
“They bought perfect players who are perfect for the way they play.
“The game against Aston Villa defined perfectly who they are.
“And where we don’t arrive, hopefully our people can help us.”
Meanwhile, Guardiola says Newcastle could emerge as title contenders this season - if they can handle their increased workload.
Last season they had the benefit of playing domestic matches only, but with Champions League involvement comes a far more testing calendar this time around.
Guardiola is full of praise for the side Newcastle are building, but says they will be tested more this term.
“It’s a Champions League team. If you are a team you qualify for the Champions League for the next season [it] is because you’re a really really good team,” he said.
“With the takeover from Saudi Arabia, in a short time they put the team together and there is a feeling they are there to stay for a long time.
“Nobody believed it last season, look what happened. They continue with Eddie Howe who created a fantastic team for many reasons - in transitions, in ball possession, in the build-up, in set pieces, everything.
“They control everything and it will be a massive test for us but we are here for that.
“If Newcastle handle the same competitions - the Champions League, the FA Cup, the Carabao Cup, the Premier League - if they handle it well, they can compete.
“But it’s completely different when you play one game a week and when you play four games a week.
“But if they are able to handle it, of course they are contenders.”
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