Mikel Arteta has a broad agreement to become Arsenal head coach but the deal is being held up by Manchester City’s compensation demands.
Manchester City are yet to agree compensation with Arsenal that would allow the Gunners to name Arteta as their new manager.
According to SkySports, negotiations are now underway between the two clubs, with City understood to be in no mood for compromise with their Arsenal counterparts as they look to recoup £2 million for their assistant manager.
Despite three weeks of speculation linking Arteta with a move to north London, no discussions took place between the two parties when City played at the Emirates last Sunday.
