Manchester City are furious over Arsenal’s approach to agreeing a deal with Mikel Arteta.
As reported by football.london, the Gunners are set to appoint their former captain as their new head coach following the dismissal of Unai Emery in November.
However, the Premier League champions claim that the north London club are still to make contact over Pep Guardiola’s assistant manager.
The Manchester Evening News reports that City are adamant a deal has not been agreed with the Gunners, however football.london understand that Arsenal have reached an agreement with Arteta.
Furthermore, the defending Premier League champions are believed to want a £1million compensation fee to release Arteta from his contract at the Etihad Stadium.
A fee that the north London outfit will be prepared to pay to appoint a head coach that had always been among the leading contenders for the job.
City boss Pep Guardiola has given his blessing to Arteta, although he's warned the Gunners not to expect an immediate upturn in results.
"I think Arsenal [are] always one of the best teams of the last 20 years," Guardiola said.
"When Arsene (Wenger) took over the team, he raised the club to another level and now they are struggling a little bit the last years.
"When the club takes a decision to replace the manager or buy players it’s always to rise to be better. Whether it's going to happen or not, I don’t know.
"You know my opinion about Mikel. He’s a professional human being and a person, I don’t have doubts about that."
In addition, Guardiola has joked that he will beat Arteta when the Gunners face Man City at the Etihad Stadium next year.
"It is a good argument -- why not?" Guardiola said, as per ESPN. "It is uncomfortable for me. It is a question for Mikel, I am not in his brain. We talk about it a little bit but his feelings are his feelings.
"If he decides to move I'll wish him all the best, for him, his family and for his professional future. I will beat him -- that's a joke!"