Manchester City are furious with Arsenal’s pursuit of Mikel Arteta, which has caused so much anger at the Etihad that it’s threatening long-term relations between the clubs.

As of Thursday morning, Arsenal and City were still finalising compensation terms for Arteta, who is not expected to be in the Gunners dugout for Saturday's match against Everton at Goodison Park.

Before he can be confirmed as Unai Emery’s successor, City will demand compensation of around £2million. Which is why their hierarchy had remained perplexed by the lack of contact from Arsenal.

It’s believed Arteta has decided to take up his first post in management, but was alongside Guardiola in Wednesday night’s Carabao Cup quarter-final win against Oxford.

He was also due to take part in training at the club’s academy on Thursday.

City sources have described Arsenal’s behaviour as disrespectful and shambolic after they met with Arteta on Sunday night - just hours after members of both clubs’ hierarchy shared the same room as Guardiola’s side secured a 3-0 win at the Emirates.

City insist their rivals gave no indication of their interest in Guardiola’s No2.

Despite the fury over Arsenal’s actions, they are yet to confirm if any official complaint will be made.

And while they will not stand in Arteta’s way, the episode could threaten future dealings between the clubs.

That could be an issue if Arteta wants to take any coaching staff with him, or emerging talent from City’s academy.

Arsenal are now facing a race to get the deal done, with Guardiola unlikely to want to see preparations for Leicester disrupted.

The Catalan confirmed this week that he expected a decision to be made imminently - but the ongoing saga is now casting a shadow over the crucial six-pointer with Brendan Rodgers’ side.