Pep Guardiola admitted that Mikel Arteta is in talks with Arsenal to take over as manager.

"I only know what you know. Today [Tuesday] I saw him. He's travelling [to Oxford] yeah. He's an incredible person and a good coach. He's talking with Arsenal so I don't know what's going to happen," said Guardiola.

ESPN sources added that the two sides are close to an agreement, but are ironing out compensation details.