The Citizens and Arsenal do battle in a FA Cup semi-final at Wembley Stadium on Saturday evening, just weeks after their Premier League clash.
City defeated Arsenal 3-0 in the first league clash after the restart last month, with Luiz giving away a penalty and receiving a red card on that night.
Despite his errors this season, Guardiola had nothing but praise for the Brazilian central defender.
"I have incredible respect for him and his career. He is an exceptional player with an incredible mentality, especially personality," Guardiola said, as per Sky Sports.
"I laugh at all the pundits, they were defenders and they didn't make one mistake in their careers when they played 10 or 15 years.
"I like he is still playing football and I am pretty sure he is going to make more good actions and mistakes, it's part of the game. I have a lot of respect for this player."