Gundogan’s current contract with Borussia Dortmund expires in June next year. The 25-year-old came close to leaving the Bundesliga giants last summer but instead signed a one-year extension.
The daily tabloid newspaper states that Manchester City are keen to sign Gundogan to link up with the incoming Pep Guardiola.
The Spanish sport claim that Gundogan has a preference to join Man City as he wants to work alongside Guardiola next season.
According to the German outlet Bild, Arsenal only have an ‘outside chance’ of signing the Germany international.
Gundogan has six assists and three goals in 32 appearances for Dortmund this season.
The Germany international career began at Nuremberg before moving to Dortmund for £4m in 2011.
Manchester City are currently in forth place in the Premier League with 47 points in 26 games