Cancelo penned a new extension to his current deal earlier in the week after admitting he had found it tough in his first few months at the Club.
Guardiola says he needed to understand Cancelo fully to help him achieve the levels he has been playing at in the past two seasons.
“Honestly, maybe the people will not believe me, but the decision to extend contacts belongs to the club - I am not involved in that,” said Pep.
“Everyone knows how important Joao is for us. He struggled in the first part when he arrived - we didn’t agree on many things - in part my mistakes.
“But now I am so delighted he is fully happy here and can play here for many years.
“He is versatile, can play in many positions, can play every day. He is beloved in the locker room because he is so funny. I am delighted for him.”
When pressed on what the issues for the Portuguese defender were in those first few months, the boss said: “(Some) players accept not playing more than others. Sometimes players have to understand that and the reasons why. Now we know each other much better.
“Every player must be treated differently. I needed more time to know how sensitive he is.
“He is an incredible person with a big heart. Some players need to be treated differently to others.
“Finally I understand more. He is an important player for us. He understands the structure of how we play. At first he needed time. As a person, always he was the same one, a nice guy.
“There were no arguments. Joao now is fully happy and plays every game. That’s all
“Every player you need to understand as much as possible. Sometimes you need time to understand each other - it’s normal.
“Joao loves to play football. He would play morning, afternoon, night. He was unhappy because he needs the adrenaline to play like the others needed, too.
“Sometimes you need time, but it’s normal. We know each other. Everyone can see how important he is because he behaves perfectly and in the end the club takes the decision.
“The manager is here today, maybe tomorrow he is not. Players are much more important than the manager.
“The club has to take decisions beyond the manager. They know which players need to be here for next years.
“These players would be good for any manager – any! That’s why we extend the contract for Joao and that makes me happy because it means we settle together perfectly and understand good.”
Guardiola also agreed, when asked, that tying a dozen or so first team players up to long-term deals was incredibly important for the future success of the club.
“It is so important,” he said.
“The soul, the players who know the club… We are a young team, except Fernandinho and Scott Carson, of course.
“The rest, the average age is so good and the club has to work to keep these players who have behaved so well.
“We know them mentally, some players play well and then are not in the right place - I think this hasn’t happened because they love football, we have to try to keep them.
“The club has done brilliantly. The soul and heart of the team is young and to keep it for the next years is so important.”
