City reached the semi-final of Europe's elite club competition for the first time this season but were knocked out of the tournament by 10-time winners Real Madrid.
"It's a big opportunity for him at Manchester City. I think he will change the face of English football," Xavi, who joined Qatari club Al Sadd in May last year, told the website for Qatar's Supreme Committee for Delivery & Legacy (www.sc.qa).
"If there is anyone capable of changing that mentality, it is Guardiola... He is without doubt one of the best coaches in the world at the moment."
Guardiola achieved a double in his final season in Germany, with Bayern winning the Bundesliga and beating Borussia Dortmund on penalties to win the German Cup in his last game in charge.
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(Reporting by Ian Rodricks in Bengaluru; Editing by John O'Brien)
