Manchester City's compensation demands have allegedly held up Mikel Arteta's move to Arsenal.
Barring any late glitches, Arteta is expected to become the next manager of the Gunners, replacing Unai Emery and recent interim boss Freddie Ljungberg.
A number of reports have suggested that the North London outfit wish to formally confirm the appointment at some point on Friday.
However, according to Sky Sports News, City will not give the green light to the move until they receive £2m in compensation.
The Premier League champions are said to be disappointed with how negotiations have taken place without an agreement between the two clubs.
The hold-up is likely to result in Ljungberg remaining in charge for Arsenal's Premier League encounter with Everton on Saturday afternoon.
