The former Bavarians midfielder is of the opinion that ex-Barcelona coach can step into Jupp Heynckes' shoes and make the Champions League finalists even better
The 36 year-old former Roten and Chelsea midfielder thinks the Champions League finalists are close to flawless but has backed Guardiola - who will replace Jupp Heynckes in mid-June - to make them even better.
He told Goal while speaking to reporters at the adidaslab in London on Friday: "If you see the statistics this year Bayern Munich played an unbelievable season, scoring most goals, conceding less and look at the way they played also - they have been so dominating and balanced from attacking football to counterattack to possession."
"It is difficult to improve a team that is at such a level but then if somebody can do it then maybe it is Guardiola.
"Before he went on his break he proved he was one of the best coaches in the world coaching one of the best teams in the world - Barcelona. They were dominant for a few years so he knows how to improve a team who is already on top."
Ballack won three Bundesliga titles with the Bavarians between 2002 and 2006 and he is backing his former side to beat Borussia Dortmund in Saturday’s Champions League final.
"Bayern have the advantage. They have adapted well to everything Borussia Dortmund have tried this season," he added.
"The injury of Mario Gotze can be critical too. Not playing with your biggest talent behind the striker Robert Lewandowski in that key position is a big loss."
Bayern and Dortmund will kick-off the Champions League final at Wembley at 20:45CET on Saturday.
Michael Ballack was speaking at the adidas lab, showcasing the latest innovations at the cutting edge of football. For more information visit www.adidas.com/football or join the conversation @adidasfootball #allforthis