The Gunners have been linked with the classy centre-back in recent weeks as Arsene Wenger steps up his plans to replace Thomas Vermaelen.
It is understood that the Frenchman has been a big fan of the 21-year-old for some time, and sees his mix of physicality and technical ability as ideal.
And now City are ready to sell as they plot to raise cash ahead of Eliaquim Mangala’s long-awaited arrival.
The Sky Blues are becoming increasingly aware of Financial Fair Play and are keen to ensure that they can balance the books this summer.
Reports suggest that the highest bid is likely to be the successful one, meaning Arsenal may well face stiff competition from Juventus, Inter Milan and Galatasaray.
City are also open to the prospect of a loan deal with a view to a permanent transfer, which could lure in more interest in the young enforcer.