The Gunners had made a £42 million bid for the 27-year-old, but were told to increase their offer if they want to sign the Argentina international. However, they now face the Sky Blues and their local rivals, and the former could make an improved offer for the striker.
Atletico Madrid may yet have a say in the forward’s future, according to talkSPORT.
The Citizens are going to make a similar bid to the one made by the North Londoners, but are willing to raise their bid. It is unknown whether the Red Devils and Arsenal are willing to match the nouveau-riche side.
Whoever does manage to get a bid accepted will likely have little trouble persuading Higuain to leave Serie A, with the player having told Napoli president Aurelio de Laurentiis that he wants to depart, according to the Daily Express. They will also be getting one of the best forwards in world football.
The Argentine has scored 51 goals in 98 games for the Italian side, and before that had 62 in 145 matches for Real Madrid.
City are in need of a forward to partner Sergio Aguero as they attempt to challenge for trophies next time round after failing to win a single piece of silverware last season.
Meanwhile, Arsenal will need a top-class forward if they are going to try and beat Chelsea to the Premier League. Of their current crop there have always been doubts over Olivier Giroud at the highest level, and Theo Walcott may be needed to play out wide. Lukas Podolski has also been shown the door, moving to Galatasaray [via ESPN].