Pep Guardiola has lavished praised on Aaron Mooy, declaring the Australian could be recalled to Manchester City for the 2017-18 English Premier League season.

Mooy will be forced to watch from the sidelines when his loan club Huddersfield Town takes on City in an FA Cup clash on Sunday morning (AEDT).

City manager Guardiola has been watching Mooy keenly after signing him from Melbourne City last year.

Pep Guardiola has praised Aaron Mooy's performances this season. ( AP: Martin Rickett )

Under the terms of Mooy's loan, he is ineligible to take on City, who sit second on the Premier League ladder.

The Socceroos midfielder has starred for Huddersfield in this season's Championship.

Guardiola praised the 26-year-old's efforts and said he would consider recalling him to City at the conclusion of the season in May.

"So, Aaron Mooy is playing amazing this season and we are glad at that," Guardiola said.

"It is not easy coming from Australia and going to the Championship and play as good as he is.

"We are going to consider what will happen at the end of the season but it's good.

"Huddersfield right now is in a big moment, playing really well, big results in the last minutes, a lot of confidence."

AAP