They want him for a cut-price £6million.
The England winger has been talking to the Gunners for some time and they are favourites to nab him. But his wages are a sticking point.
Wright-Phillips is looking to leave Eastlands and City will let him go for a reduced fee to get him off their wage bill.
Phillips, 28, is keen for a move and his decision will come down to the financial package either of the three premier League clubs are able to put together.
He has two years left on his contract at City where he earns £60k a week.
Last season he became disillusioned over the club's failure to offer him improved terms and fell out of favour with boss Roberto Mancini.
Wright-Phillips came on as a sub twice in the last World Cup but failed to shine.
Cash-strapped Liverpool are also sniffing around and new boss Roy Hodgson is looking to see if the Reds can put together a package to lure Phillips.
Tottenham are also keen but have a strict wage structure and boss Harry Redknapp would struggle to improve on what Wright-Phillips is already earning at City.
i cannot believe so many teams are after him.
probably he is english is a factor, but walcott and lennon is more speedier and pacy than him. he is running like a headless chicken. I dun think he is good enough to play for england in the first place.
tottenham and arsenal wont release those players for any low fees, and also liverpool cannot afford any huge transfer amount so i guess swp was the only choice left. i think it's ok to get swp, provided that the fee is low, 5m will be reasonable.