The Gunners want to acquire the England international for a reduced £6 million price and are considered the favourites to land him this summer, according to The Sun.
However, the 28-year-old’s wages are a main issue as City would sell Wright-Phillips at a lower price just to get his salary off of their books.
Wright-Phillips, who has two years remaining on his current £60k-a-week deal, and is hoping to move from the Eastlands club.
The speedy winger is not happy that City did not offer him a better deal last season and fell out of Roberto Mancini’s line-up, losing his place to England starlet Adam Johnson.
Liverpool are interested in a move for Wright-Phillips as well and are attempting to set up a deal to bring him to Anfield.
Spurs manager Harry Redknapp is also keen to nab the winger but Wright-Phillips’ hefty wages could be a deterrent for Tottenham.
Arsenal are set to fight it out with Premier League rivals Liverpool and Tottenham Hotspur for Manchester City winger Shaun Wright-Phillips.