SkySports have reported that the Bundesliga club want to resolve the Gundogan situation as soon as possible after losing their captain Mats Hummels to Bayern Munich.
Gundogan came came close to leaving the Bundesliga giants last summer but opted to sign a two year extension.
The 25-year-old looked set to be Pep Guardiola’s first signing after Man City sporting director Txiki Begiristain met with Gundogan’s uncle and agent in Amsterdam back in March.
The Manchester Evening News report that the transfer was close to completion with City agreeing personal terms with Gundogan.
The report goes onto state that it is unclear whether the injury will affect the Citizen’s plan to sign him over the summer.
The Gunners are also interested in the 25-year-old according to the Daily Mail newspaper.