The former City captain returns today with Burnley after moving to Clarets over the summer.
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Guardiola said, "Last season was tough for everyone, for him, for all of us.
"I don't judge behavior over a short period of time. He was incredible. One of the best full-backs ever. I slept like a baby during the games with Kyle there.
"(He is) one of the greatest in terms of continuity and injury-free matches, an incredible figure in the dressing room. In (eight) years, six Premier League titles, one Champions League, (many) titles, always there in good and bad moments."