Pep Guardiola has confirmed Mikel Arteta is talking to Arsenal with the club’s knowledge and permission but says he expects his assistant to be involved in Manchester City’s Carabao Cup quarter‑final on Wednesday. “At the moment Mikel is still with us, he has been working in training and as far as I know he will be travelling with us to Oxford,” the City manager said. “He’s talking with Arsenal and I don’t know what will happen and when but Mikel is an incredible person. We were so smart to pick him up and now the others want him I’m not surprised.

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“He’s a good manager, that’s why he’s done well with us. He’s an adult, he can make up his own mind about what he wants to do. I was aware of the meeting with Arsenal on Sunday night. Mikel has been very honest with me all through this situation but for now he’s still a member of the City staff and part of our group.”

Guardiola believes Arteta could thrive if he takes the job at the Emirates Stadium. “Arsenal have been one of the best teams around in the last 20 years,” he said. “Arsène Wenger took them to another level but now they seem to be struggling a little. I don’t have any doubts about Mikel. If he decided to stay here I’d be happy; if he moves then I will wish him all the best.”

Guardiola knows Oxford from playing them last season and describes City’s next game as an important chance to reach another semi-final, though Carabao Cup matters were put into perspective on Monday when the Champions League last-16 draw paired the former Barcelona manager with Zinedine Zidane’s Real Madrid.

“It will be an incredible test for us but we have two months to prepare for it,” Guardiola said. “Hopefully we will be in a good moment in February and we can play a good two games. “Real Madrid have a lot more experience than us in this situation, they have played this sort of game many more times, but of course I have confidence in my players.

“We are happy just to be in the last 16 of the competition even if people think that’s not enough. If you want to do well in this competition, to progress further than that you have to face this sort of opponent sooner or later.”

Guardiola holds Zidane in the highest regard from his playing days and once thought it might be possible to play in the same team, possibly in Italy. “That never happened but I used to dream of playing with Zidane,” he said. “He was an incredible player and he’s an incredible person. I have always admired him and it will be a pleasure to meet him again.”

Sergio Agüero is back in full training and could play against Oxford. David Silva is not ready but may be considered for Saturday evening’s home game against Leicester.