The midfielder has lauded the former Barcelona coach's decision to go to the Allianz Arena next season, having won the Bundesliga and Champions League himself in Bavaria
Guardiola, who had been strongly linked with a move to either Chelsea or Manchester City, agreed a three-year deal with Bayern following his season-long sabbatical after leaving Barcelona.
Canadian-born Hargreaves garnered an impressive reputation throughout Europe for his dynamic performances in Bavaria, and believes the Spaniard's move is the right one to make.
"I think it is a smart move from Guardiola," Hargreaves told BBC Radio 5Live.
"Not many clubs have the stability and structure of Bayern. They are the Manchester United of Germany."
Hargreaves made almost 150 appearances during his spell in Germany, scoring five times before making the switch to Old Trafford for a reported fee of £17 million (€20.5m).
The 31-year-old's career was cut prematurely short following a speight of injuries during his time with the Red Devils before he made just one solitary appearance for neighbours Manchester City.
Guardiola will replace Jupp Heynckes, who is set to retire at the end of the current campaign with Bayern nine points clear of Borussia Dortmund at the top of the Bundesliga and set to face Arsenal in the last 16 of the Champions League.
The Spaniard won 14 trophies during his time at the Camp Nou, including two European Cups.