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The Daily Mail report that the Etihad giants want to ensure they sign the Chilean by paying a reasonable transfer fee for the versatile attacker who is set to become a free agent when the current league season ends.
A recent injury to Brazil international forward Gabriel Jesus has seen the Citizens change their intent on the former Barcelona man and they could look to force through a move in the coming months, boosting their opportunities of competing favourably on four fronts this campaign.
The Gunners are thought to be set to consider bids of about £35 million for the exciting forward who has found the net eight times in all competitions this season for the Gunners.
Manchester City were strongly linked with him throughout the summer transfer window and saw a £60 million offer turned down by French tactician Arsene Wenger, who is highly keen on keeping the player at the North London club.
However, the Sky Blues could table a new offer for him given injury woes to Gabriel Jesus and Kevin De Bruyne.