Declan Rice has been priority no.1 for the Gunners but Arteta's side are now facing a tough battle to land his signature.

While a deal for Kai Havertz is all but done, Arsenal are yet to sign their main target for the 2023 summer transfer window. That man is Declan Rice, with the Gunners having lodged in two bids for the Englishman, both of which were rejected immediately.

As a result, this has left the race for the highly-rated West Ham captain open, and much to the frustration of Arsenal fans, the most dreaded team in the league have officially entered the race for the 24-year-old's signature. That team is none other than Manchester City, the English champions that boast the financial prowess to meet the Hammers' demands with ease.

According to David Ornstein of the Athletic, one of the most reliable sources in the game, Guardiola's side are preparing an offer for Rice after losing Ilkay Gundogan to Barcelona. While the Gunners remain the favorites in the race, the entrance of the Cityzens has sparked major concerns among the Emirates Stadium fan base.

According to the report, the treble winners have been actively exploring an approach for the West Ham captain and while Mateo Kovacic will be moving to the Etihad Stadium from Chelsea, the UEFA Champions League holders want another midfielder following Gundogan's decision to leave for Barcelona on a free transfer.

Arsenal had a club record bid worth up to £90M ($115M), which consisted of a £75M fee and £15M in add-ons, rejected by West Ham. Negotiations are ongoing and while Edu and Co. are getting closer to the Hammers' asking price, a bidding war could ensue.

The Gunners have a recent track record of losing bidding wars with Premier League rivals, with Lisandro Martinez and Mykhailo Mudryk being two good examples. While Arsenal have put in the groundwork and are said to be Rice's preferred destination, Man City's willingness to lodge a bid suggests that the midfielder is open to an Etihad Stadium switch.

It remains unclear where Declan's future lies. He is arguably one of the most talented midfielders in the world and could become the most expensive English player in history. Only time will tell if Arsenal or Manchester City will win this race.