The Zenit St Petersburg star, 27, wants to quit his homeland for a crack at a bigger league after lifting the UEFA Cup last season.
The Gunners are claimed to have lodged an offer of around £10m but with mega-rich City able to blow them out of the water, any transfer will come down to the player’s ambition, or desire to seek massive wages.
Zenit spokesman Alexei Petrov told the Mail on Sunday: “I can confirm that Zenit did get an official offer from Arsenal about Andrei Arshavin. It was rejected as insufficient.”
He added: “They offered about £10m. No new offers have arrived from them since. At the moment, Arsenal are the only club to have approached us about the player.”
Arsene Wenger has called on his Arsenal side to put on the sort of displays that will have stay-away fans returning to the Emirates Stadium.
Michael Jacobs struck in stoppage time as Wigan got their League One promotion bid back on track with a 1-0 win at Bradford.
Lionel Messi punished error-prone Chelsea as Barcelona advanced to the Champions League quarter-finals with a 3-0 win at the Nou Camp.
AC Milan boss Gennaro Gattuso believes Jack Wilshere would grace any league in world football.