Guardiola has led Bayern to back-to-back Bundesliga titles since being in-charge of the German club but has not quite been able to deliver in the Champions League.
His side was beaten 0-5 on aggregate by Real Madrid in the semi-finals in the last term and they face a similar threat 12 months on after losing 0-3 to Barcelona in the first leg of their last four tie last week.
“It seems the players are losing a bit of belief in the coach and he hadn’t expected that. Guardiola has already said that their season is over and he’s been rotating his team so much that he’s unsettling the team,” Matthaus was quoted as saying by goal.com on Monday.
“His team no longer has the stability they had for over eight months, enchanting football fans up and down Germany.”
In addition to the Champions League loss at Camp Nou, Bayern crashed out of the semi-finals of the German Cup to Borussia Dortmund on penalties and have lost their last four contests in all competitions.