The England international enjoyed a stellar season for the Gunners, playing a lead role in their improvement under Mikel Arteta.
Arsenal’s collapse during the closing weeks of the campaign, however, has opened the door for several of his suitors to test the north London club’s resolve.
City are long-term admirers of the 20-year-old who was nominated for the PFA Player and Young Player of the Year Award last month.
The Premier League champions have already secured the headline signing of Erling Haaland, but are eyeing long-term replacements for the likes of Riyad Mahrez and Raheem Sterling.
Liverpool, too, have registered an interest in Saka with Jurgen Klopp planning for the eventual departures of Sadio Mane and Mohamed Salah.
Arsenal have entered into initial discussions with Saka over contract extension but talks have been complicated after missing out on a return to the Champions League.
The Gunners haven’t featured in the tournament since 2017 and with Manchester United destined to improve under Erik ten Hag, competition for a top four place will be as intense as ever next term.
Saka’s current deal expires in just under a years’ time but, according to the Daily Mail, Arsenal have the option to extend for a further 12 months which would offer them some form of protection.
However, should they fail to agree fresh terms with Saka, they would face the prospect of losing one of 25 most valuable players in world football for a fraction of what they would hope to recoup.
Arsenal are in a similar situation with William Saliba, who impressed on loan at Marseille last season but is still waiting to make his competitive debut for his parent club some three years after joining in a £30million transfer from Saint-Etienne.
Speaking about his future last weekend, the France international said: ‘I belong to Arsenal, I still have two years left.
‘I will be back with Arsenal. I have played zero matches and I still want to show them my true face and have the chance to play for these fans and this great club.
‘But it doesn’t just depend on me. In any case, to leave like this, would be a shame.’
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