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Fabregas, 24, has been a long-term target for the La Liga giants and Guardiola is keen to see the midfielder return to the Nou Camp as quickly as possible.
He said: "Arsenal have agreed to negotiate and we're working on it.
"Barcelona have made an offer, Arsenal another and we have time until August 31 to try and reach an agreement.
"There is a sum of money in the strong box set aside for this signing but if it doesn't work out it will be kept for something else.
"We'll fight to the end to try to get Cesc because we believe he will improve the team and the squad."
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