Despite City naming just 27 players from a possible 35 for the tournament beginning in the United States on June 14, Grealish was omitted alongside former captain Kyle Walker.
All four of the club’s new signings this week – Rayan Ait-Nouri, Rayan Cherki, Tijani Reijnders and Marcus Bettinelli – are included.
Ballon d’Or winner Rodri is also selected after making his comeback from a long-term knee injury just before the end of the Premier League season.
Grealish, who remains City’s record signing after a US$135 million move from Aston Villa in 2021, has fallen down the pecking order over the past two seasons.
He made just seven Premier League starts in the 2024/25 campaign and was notably not summoned from the bench as City went down to a 1-0 defeat to Crystal Palace in the FA Cup final last month.
The 29-year-old still has two years left to run on his City contract and his reported US$405,000 wages are a barrier to finding a potential suitor.
Guardiola threatened last month he could leave the club if the size of his squad is not cut before the new season begins.
Grealish is just one of a number of expected exits, along with Walker.
The 35-year-old spent the second half of last season on loan at AC Milan, but the Italian giants have not taken up an option to buy.
City begin their Club World Cup campaign against Moroccan side Wydad Casablanca in Philadelphia next Wednesday before facing further group games against Al Ain of Abu Dhabi and Juventus. (AFP)
