The Barcelona full-back said his former boss at the Nou Camp had a plan to make the hosts world champions again.
But Alves claimed Brazilian football officials were afraid of hiring a foreign coach for the national side.
"Pep said he wanted to make Brazil a World Cup champion and had an entire strategy to make us a world champion," the 32-year-old told ESPN Brasil.
"They didn't want it, because they said that they didn't know if Brazil would accept a foreign coach."
Under Guardiola, Barcelona established themselves as the dominant force in club football, winning 14 trophies in four seasons including two Champions League crowns.
He left in June 2012 and was appointed Bayern Munich coach the following summer, leading the German side to back-to-back league titles.
Alves described the 44-year-old as the "best coach in the world".
He added: "He revolutionised football, revolutionised a team, and we had the chance to have him with us.
"If you let an opportunity like this go by, then you are not really thinking about the national team."
Wednesday marks the anniversary of Brazil's 7-1 World Cup semi-final defeat by Germany.
Luiz Felipe Scolari was appointed Brazil coach for the second time in 2012 and led the side in the World Cup. He resigned after the hosts lost 3-0 to the Netherlands in the third-place play-off.
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