The Brazilian international has fallen out of favour at Stamford Bridge, with Gary Cahill and John Terry now Jose Mourinho's preferred centre-back partnership.
Luiz was dropped following the 2-0 defeat to Newcastle earlier last month, and the former-Benfica star has since been linked with a move in the winter window.
Barcelona have been heavily linked with the defender, but it seems they could be beaten to the punch by their former-manager.
There's no love lost between Guardiola and Mourinho though, which raises doubts over the likelihood the Chelsea manager would sell Luiz to one of his closest rivals.
The Brazil defender is currently first choice for his country, and will be desperate for first-team football with the World Cup on home soil next summer.
The report claims Chelsea would demand up to €50m for the player they signed in January 2011, and that the Blues would be open to bids for the defender.
Bayern Munich play Jerome Boateng and Dante at centre-half at the moment, and they played a key role for the treble winners last year.
But Guardiola reportedly sees his defence as a potential area of improvement.
Do YOU want to write for GiveMeSport? Get started today by signing-up and submitting an article HERE: http://gms.to/writeforgms