He previously declared that he already made his decision about his Chelsea future, although he is yet to make it public.
According to Don Balon, the Belgian attacker very much had his heart set on moving to the Spanish club, but is now willing to sign a contract extension with Chelsea after Florentino Perez didn't make a concrete offer for him.
When told that Higuain has described him as a father figure, Sarri joked: 'I hope I am the football father!
"I will be really very happy with him if he will want to stay, because in my opinion he's the best in Europe".
The Blues boss is encouraged by the relationship developing between Eden Hazard and Higuain.
Marcos Alonso has been a weak-link for most of the season, despite signing a big-money and long-term deal, and he was at fault for the opening goal as he failed to pass on marking duties on Bernardo Silva to either Eden Hazard or Ross Barkley.
Defeat at the Etihad Stadium was Chelsea's third in succession away from home in the Premier League, and the manner of the Blues' first-half capitulation, falling 4-0 behind inside 25 minutes, left Sarri unable to explain what went wrong.
The French league leaders have been keen " "will reignite their interest in Chelsea midfielder N'Golo Kante this summer".
Sarri-ball has malfunctioned this season as Olivier Giroud and Alvaro Morata struggled to lead the line, while Eden Hazard also toiled in a false nine position. "My target is to play my football, not to change [to] another football because at the moment we are playing another football".
And he insisted his side are not in the Premier League title race, contrary to a suggestion from City counterpart Guardiola earlier this week.
"We are still learning about his concept. No more, I think".
"Long term I think they've got to find the next Didier Drogba or [Diego] Costa or a younger striker".