The Manchester City boss made two bids for the Algerian in January, but they were rejected by the club and Mahrez was forced to stay.
However, Guardiola remains keen to bolster his attacking options with Mahrezs services, even though he has two years left on his contract at the King Power Stadium.
The 27-year-old playmaker was pivotal to the Foxes 2015-16 Premier League-winning season, racking up 17 league goals on the way to glory.
While this season has been less prolific, hes still bagged a solid return of 11 goals in all competitions so far and attracted attention from the newly-crowned Premier League champions.
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Leicester currently sit eighth in the Premier League, eight points behind seventh-placed Burnley.
Their next game is away to Crystal Palace on April 28 before finishing the season against Arsenal, West Ham and Spurs.