Arteta is among those who is being linked with the position after the sacking of Unai Emery.
Freddie Ljungberg is currently in temporary charge at the club. But Arteta is said to want guarantees from the club's board.
He would love to come back to the club where he was a player, but he is hoping to get a clearer picture of the board's long-term vision before committing.
A Man City source reportedly told The Sun: "Mikel wants the job but wants to know what is on offer and guarantees from them.
"He will then speak to the club. Nothing is going to happen before the end of this week from what we can tell.
"Mikel is conflicted because of his relationship with Pep and feeling for City after the years there.
"He has been excellent since he got here and there is a feeling he is going to be a top manager one day."