Kyle Walker's future at Manchester City is still being speculated on, I even heard recently that Guardiola himself is still confused about the decision to sell him, it seems that maybe now Guardiola is thinking about keeping him.
Manchester City and Pep Guardiola don't try to keep any player if that one is not very important with them. Looking at how they treated Kyle in latest months of the past season, I don't feel they actually plan to keep Kyle in their club. Firstly he is becoming older and only this contains risk that he will has worse performance for Manchester City in coming seasons. Second Pep and Manchester City just changed their tactics in late of last season and no signal that they will change it back just to help Kyle more comfortable. Except if Kyle adapts to the club new tactics, he will be kept but again his age will be another barrier.
Well, indeed, on the other hand, Kyle Walker has now succeeded in establishing a verbal agreement with Bayern Munich and now the final decision rests with Manchester City itself. Kyle Walker has quite a lot of experience and he also has good speed and technique on the field.
Moving to Bayern Munich is not a too bad choice for Kyle as he will play for one of biggest clubs in Europe and he will have chances to win another Champions League. It is a good destination for Kyle and his age will have less effects on his performance in Bundesliga.
Kyle Walker might not be regular starter for Manchester last season but he was a very important member of the treble winning squad of last season.
However if Pep Guardiola deems him to be surplus to requirements at the club, then he should be open about it and let the player know that his services are no longer needed at the club so he can look for another club where he can continue his career rather than keeping him in dark.