Manchester City are ready to hand a new deal to Mikel Arteta.

The Daily Mail says Arteta is set for a new City contract after missing out on the Arsenal job.

City manager Pep Guardiola and chairman Khaldoon Al-Mubarak were quickly in touch with Arteta on Monday night as news broke about the Gunners settling on appointing Unai Emery instead.

Etihad chiefs were convinced Arteta would be next Arsenal manager given how far down the line discussions had progressed.

But Arteta's disappointment will be softened by the offer of a new two-year extension to remain on as part of Guardiola's backroom team.