The Spain midfielder joined City in January and is set to start tonight against Champions League opponents Villarreal.
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"I have the feeling Nico is getting better and better,” Guardiola said.
“It is not easy sometimes when you arrive at a new club and play in a different style to the past. I like his behaviour, and I feel he will get better month after month and year after year.
“He is so coachable, so open minded, he’s a lovely, lovely guy and his mum and dad should be proud of him as a human being.
“And I have a feeling that every game he is getting better.
“Hopefully Rodri will be back to train more often with him but yes he is young and to see a player with the stature like Rodri, always you will improve.”