The Gunners remain in danger of seeing Alexis Sanchez and Mesut Ozil depart in the current transfer window as the pair are both in the final six months of their respective deals and the reported targets of some of Europe's biggest clubs.
Arsene Wenger has denied making a bid to bring West Brom centre-back Jonny Evans to Arsenal. But, poor form has done nothing to sway the interest of his suitors. They are likely to make a £25m bid, but could go up to £35m if necessary.
Jesus suffered a leg injury in the goalless draw against Crystal Palace on Christmas Eve with City manager Pep Guardiola confirming that he will be out for several weeks. "I would bet at least one of them stays".
"The two clubs have held talks in recent days and the Blues are cautiously optimistic of getting a deal done, despite the Gunners' £35 million asking price", it's said in the report, with Arsenal said to be "resigned" to losing their No. 7 mid-season.
Manager Pep Guardiola has already iterated that the Premier League leaders could enter the market this month, although signing anyone will be hard.
Arsenal, on the other hand, are keeping their options open and are scouring for possible replacements, with the likes of Pierre-Emerick Aubameyang, Hirving Lozano and others linked. Although injuries played their part, Gabriel feels he warranted more first-team opportunities in his two-and-a-half-year spell in England. With Manchester City in a precarious situation now, they might just have to budge and meet the valuation.