Winning the Club World Cup won't make amends for Manchester City's disappointment of last season, says manager Pep Guardiola. City failed to win a major trophy for the first time in eight years but claimed the Community Shield at the beginning of the campaign. City finished third in the Premier League, failed to reach the last 16 in the Champions League and were stunned in the FA Cup final by Crystal Palace.

Along with Chelsea, City are one of two English sides currently competing at the revamped Club World Cup in the United States. They began Group G with victory over Moroccan side Wydad AC and another three points against UAE club Al-Ain in Atlanta on Sunday will seal progression to the last 16.

"I said many times, the season was not good," said Guardiola. "When you finish third in the Premier League to qualify for the Champions League, it means 70 teams were worse than us. We played the FA Cup final in an incredibly high level against a really good team. The disappointment was the Champions League, we did not do really good. It was tough to handle it."

Winning this competition is not going to change that but my mindset at the moment is not about winning the competition. We can extend our time here, being here longer. For the South American teams, the competition may be the maximum. For European teams, it is [just] a World Cup."

Al-Ain manager Vladimir Ivic, formerly of Watford said: "When you play against the best ones, you want to be the best of yourself. I am sure my players will give the maximum, trying from the first until the last, to show themselves the best way against the best one. We have to believe in ourselves and my team."

Guardiola won this competition in its previous guise with Barcelona and led City to success by thrashing Fluminese 4-0 in Saudi Arabia two years ago. Questions have been raised about how seriously European sides rank this tournament, although teams from the continent can collect up to £97m if they go all the way.

Meanwhile, players and supporters from elsewhere such as South America have shown their passion for the tournament, filling stadiums with thousands of fans and adding a distinct colour and atmosphere.

"I was lucky to play as a manager in this competition four times and we won four times," said the Spaniard. "What would happen in Brazil is they would have a carnival for one week, dancing and celebrating, but it is cultural for the continent and countries. Now we are here, I want to do the best, I want to enjoy the moment here because you are here one time every four years and I want to do well and I want to arrive in the latter stages."

Guardiola has reiterated a need for a smaller squad heading into the new season, having joked at the end of the last campaign he would "quit" unless the playing staff was cut. City have a 27-man touring party for the Club World Cup; out-of-favour Jack Grealish, Kyle Walker and Kalvin Phillips have been left at home, James McAtee was not selected and Mateo Kovacic is injured.

Meanwhile, German midfielder Ilkay Gundogan has been linked with a move to Turkish champions Galatasaray.

"We have - right now - a long squad, too many players, so we cannot go with 26, 27 players this season because there would be more [not] playing and step by step maybe a few players are going to move. But right now, Ilkay is absolutely part of my mind and the team. I would love to have the players that we have now all season. I would love it. I don't have any complaints about the players, how they behave."

He added: "The problem is they will be unhappy during the season. They will be sad, they will be disappointed. I don't want that. For me it's not a problem. I have more [players to select] and I don't [want] six, seven players, if no injuries, being at home. So I do it that way. I do that for them. So that's why we have to see what happens. We still have a long time, I would say, until the transfer window will be closed."