Malago also said "exceptions" could be made in terms of salary for the 55-year-old former Manchester City manager.
Guardiola, who previously coached Barcelona and Bayern Munich, left City at the end of last season after winning six Premier League titles, three FA Cups, five League Cups and the Champions League during a 10-year reign.
Gennaro Gattuso resigned as Italy head coach in April after the four-time champions failed to qualify for a third World Cup in a row.
According to Gazzetta dello Sport, Malago said: "(Financial) exceptions have been made, exceptions that for example may concern the name that is so overbearing in these hours: Pep Guardiola.
"Exceptions for obvious reasons that I am not here to explain, but it is not certain that this thing will go through."
Roberto Mancini, who led Italy to Euro 2020 glory, and former Azzurri midfielder Andrea Pirlo are other candidates for the vacancy.
Asked if Guardiola, Mancini and Pirlo were the only names on the shortlist, Malago replied: "Absolutely not. We think about a certain profile and certainly these names fall into that category."
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