Guardiola was counting on Luiz to provide cover for Fernandinho in midfield, but the uncapped Brazilian was denied a work permit because he did not fit the authorities' criteria for non-EU citizens.
Luiz is a 20-year-old Brazilian who joined the club from Vasco da Gama in 2017. On Thursday, the FA announced they would not grant him a work permit. I accept the rules but I don't understand, anyone in the world can work where he wants.
City were reported to have sent the FA video footage of the player.
'But one day before and you decide he can't play because, I don't know, he's not tall enough, doesn't play enough, games in the past or something like that.
"I'd have preferred the decision 10 or 15 days ago as we could have decided what we can do".
Tite also weighed in, insisting that Douglas would become a "superstar" playing under a manager like Guardiola and would get into the Brazil squad as a result, while Edu branded him 'brilliant.
Ex-Sevilla and Chile boss Jorge Sampaoli left the role in the wake of a disappointing World Cup campaign that saw Argentina knocked out by eventual winners France 4-3 in the last 16 after only just scraping through their group.
Argentinian Football Association president Claudio Tapia claimed an approach was made but Guardiola was too expensive - a comment which has irked the City boss.
"We were prepared to make an effort". Let us know in the comment section below.
Guardiola said: "He's not allowed - I'm sad and disappointed about it". "To know that, he has to know my salary".
He added: "The Argentina national team has to have an Argentinian manager".
Luiz did not automatically qualify for a work permit, so Manchester City had to apply for an exemption. According to Guardiola, the youngster will be loaned out again this season.