The Algerian forward previously handed in a transfer request in January which was eventually ignored by his current employers Leicester. A reported £50m bid from City was rejected by the Foxes, but this stance is likely to change this summer.
With his move seeming more inevitable as the months tick by, Mahrez now favours a move to Arsenal as opposed to the newly crowned Premier League champions in the blue half of Manchester.
Mahrez is keeping his options open however as he is not ruling out any potential offers from Arsenal's London rivals, Chelsea and Tottenham. As all three teams have endured disappointing seasons, the 27-year-old could be a fantastic addition as they look to battle for the Premier League title next season.
These rumours coincide with the recent speculation surrounding the future of the current Leicester manager Claude Puel, who has come under a lot of pressure regarding his future at the club. The Frenchman has guided Leicester to just 18 points from their last 17 games; a far cry from the heights of two seasons ago.
The 2016 PFA Player of the Year, Mahrez, has been a standout performer in an under performing Leicester side this season and he will be hoping that a move to London will allow him to play in a side more suited to his abilities.