The 32-year-old England international is alleged to have exposed himself in a Manchester bar over the weekend, while also touching a woman's breasts.
Cheshire Police confirmed on Thursday that they were investigating the incident, although no arrests have been made at this stage.
In a press conference on Saturday, Guardiola said Walker would also be dealt with internally and called on players to be more aware of their actions in the public eye.
“[It’s a] private issue, we will sort it internally, speaking with him. This is not the place to speak about private situations,” the City boss told reporters.
When asked whether players need to be more careful in public, Guardiola responded: “Definitely. It’s completely different than years ago. They know it. When you open the door at home they need to know they will be filmed whatever they do. That is society.”
Next Match
Walker, who is married with three children, is expected to continue training with the Premier League side, while reports of a premature contract termination are thought to be wide of the mark.
The England international is thus eligible for selection by Guardiola for City's match away at Crystal Palace on Saturday. The Spaniard did not reveal whether Walker would feature in his immediate plans.
The investigation into events alleged to have taken place last weekend is ongoing. Both Walker and City have thus far refused to comment.