Franz Beckenbauer believes Pep Guardiola picked Bayern Munich over Chelsea as the Bundesliga side pose more of a challenge to him.
The 42-year-old recently signed a three-year deal with Bayern and will replace Jupp Heynckes as the Allianz Arena side's head coach at the end of the season, snubbing interest from a host of English Premier League outfits.
"I have a lot of respect for his decision. Bayern are a bigger challenge for him than for example a team like Chelsea," Beckenbauer told Bild.
"We do not have someone like (Chelsea owner Roman) Abramovich. We have to be spot on with our transfers.
"There's still room for improvement for Bayern under Guardiola. Constantly pressuring your opponent, quick counter-attacks and finding the available player on the pitch.
"(Borussia) Dortmund are closer to Barcelona than we are in those areas."
Bayern sit atop of the Bundesliga table with 48 points from 19 games.