The left-back has been a first-team regular for Bayern since the age of 19 and, now 23, has played in over 100 Bundesliga games and earned 42 caps for Austria.
It has been suggested Guardiola could attempt to sign Alaba when he becomes the coach of Manchester City next season but the Catalan has indicated that he expects to see the defender remain in Germany for the forseeable future.
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"He can play everywhere – and he is so passionate," Guardiola told reporters. "He will be one of the best players in Bayern's history."
Alaba has made 17 appearances in the Bundesliga this season and has regularly deputised as a centre-back for the reigning champions.