Eriksson and Manchester City owner Thaksin Shinawatra have decided the 27-year-old striker does not fit the age profile of players the club needs to sign in January despite Owen's famous hat-trick against Germany when Eriksson was England boss.
"I agree with the way Arsene has done it at Arsenal. It's my philosophy too," said Eriksson, who has maintained his personal relationship with Owen since returning to club management.
"It is the right way for City. We're building for the future."