Jason Denayer is a transfer target for Arsene Wenger.
The Belgian defender enjoyed an outstanding season alongside Virgil van Dijk but had mixed fortunes last term on loan at Galatasaray where he only started 15 matches.
Wenger is keen to bolster the Arsenal defence and also has the added complication of Laurent Koscielny being out of contract next summer.
The Arsenal boss is reknowned for developing young talent with Denayer, who only turned 20 in June, a prime target for a move to London.
According to a report in The Sun a City source said: “Denayer signed a new contract last summer. He is rated at about £15m at the club and is on around £25,000-a-week.
“Arsenal have been interested before just over a year ago but only bid £5m. There was no follow-up offer at the time, but Wenger is a fan.”
Despite his youth Denayer provided an instant calming influence on the Celtic defence with his partnership alongside van Dijk key to the success that Deila enjoyed in his first season when Celtic won the title and League Cup.
There was never any prospect of Celtic getting Denayer on a permanent deal with Deila turning to Dedryck Boyata as back-up.
Just before the end of his Celtic loan deal Deila said: “Jason is going back to Manchester City after the season to have a pre-season and we will see if we can get him back or not. That is something we want, but we have to co-operate with City.
“But I think it’s good for him to stay here because hopefully we will get Champions League qualification and that will make him even more experienced.
“Jason is ambitious – he wants to play at the highest level he can but it’s playing that is the most important thing, and playing at Manchester City is very, very hard. If not, I think Celtic is a good club for him.”