Manchester City is yet to agree compensation with Arsenal that would allow the Gunners to name Mikel Arteta as their new manager, BBC reports.
Arsenal are finalising the paperwork for City’s assistant manager, 37, to replace Unai Emery.
Arteta was at Oxford on Wednesday night for City’s Carabao Cup quarter-final but it is expected Arsenal will be able to appoint him later this week.
However, City are growing increasingly agitated by Arsenal’s conduct.
BBC sport reports that there has still not been formal contact between the clubs, with a seven-figure release clause yet to be agreed.
Arteta has kept Manchester City manager Pep Guardiola fully informed of the situation.