The French full-back is due to be out of contract at the Emirates Stadium this summer, and has been stalling on penning an extension with the Gunners with the two parties believed to be some way apart with their demands.
Arsenal boss Arsene Wenger is thought to be keen to keep the experienced ex-Auxerre man, yet the player himself is willing to discuss a switch to City.
The Sky Blues are said to be ready to take Sagna, with talks with him scheduled for after this month’s FA Cup Final.
City are thought to be more eager than Arsenal to match his £100,000-per-week wage demands, with the Londoners looking to pay him closer to the £80,000-per-week mark.
Sagna’s representatives are already rumoured to have discussed a move with European clubs, but English outfits are unable to speak to him until the campaign closes due to transfer rulings.
The defender himself is in no major rush to decide his future and is keen to assess all of his options.