Arsenal are preparing to announce a deal to bring Mikel Arteta back to the Emirates Stadium to become the club's new head coach.
Unai Emery was dismissed from the same role back in November after a poor run of results and a failure to show signs he was bringing a more positive style of play to the team.
Relations have soured between Manchester City and the Gunners after photographs emerged of Vinai Venketasham and Hus Fahmi leaving Arteta's home in the north west during the early hours of Monday morning.
According to the Manchester Evening News , the hierarchy at the Etihad Stadium are far from happy with the north London club and will not negotiate over their demands for the former Arsenal midfielder.
While personal terms may be agreed with Arteta it is claimed that the two Premier League teams are still to sit down to discuss compensation for the City assistant manager.
The 37-year-old has been a member of Pep Guardiola's coaching team since 2016. In the last two seasons he has helped lift the English title under the former Barcelona and Bayern Munich manager.
He has even been credited with bringing out the best in Raheem Sterling and is understood to be highly thought of at City by Guardiola and over key figures at the club.
It will cost Arsenal a reported £2million to release Arteta, and after the manner of their approach, the Premier League champions will accept nothing less than what they are due.
A course at City told the Manchester Evening News : "It's surprising to hear that plans are being made by Arsenal to unveil our coach as their head coach on Friday on the basis that no contact has been made by the club to discuss this matter."
football.london understand that Arteta and Arsenal have agreed a three-and-a-half year deal with the former club captain set to be announced on Friday December 20.
The Spaniard will sit out his first game in charge against Everton with Freddie Ljungberg to remain in charge of the team as his successor watches on from the stands.
Arteta's contract with City runs until 2021. Once the Gunners have paid to release him from his deal they will be able to announce him as their new head coach.
