Sterling has been one of Manchester City’s most improved players ever since Guardiola took charge of the club but the former Liverpool player has spent significant time on the bench in recent weeks.
Sterling has started just two of Manchester City’s last eight matches, with the likes of Phil Foden, Gabriel Jesus and Riyad Mahrez preferred in attacking positions.
He played just three minutes on Wednesday as City advanced to the UEFA Champions League semi-finals at the expense of Borussia Dortmund but Guardiola insists Sterling remains key to his plans.
"The trust with Raheem is intact," Guardiola told reporters ahead of Saturday's FA Cup semi-final against Chelsea at Wembley.
"It is the same as when we arrived here.
"[The only reason] why he has played less is because there is Gabriel (Jesus) sometimes or especially Phil (Foden) or Riyad (Mahrez) and they are at a top level, scoring goals and being decisive in the final third.
"He has to have confidence. He has the confidence of all of us, he has to have it. Because the quality is there. I cannot give the players confidence.
"They have to have it for themselves to give me the confidence to be selected.
"I have said many times what we have done over these incredible years, with the amount of titles, breaking records in the process… Raheem is key.
"He was a key player and is a key player. But in this moment Phil is playing really well and Riyad is playing really well."
Sterling has made 41 appearances for Manchester City this season, scoring 13 goals.