The Gunners have been heavily linked with a move for the Bordeaux midfielder with Cesc Fabregas widely tipped to join Barcelona this summer. While City are also monitoring Gourcuff's uncertain future.
In demand: Manchester City, Arsenal and Lyon have been linked with Gourcuff
Gourcuff, 23, was one of the major forces behind Les Girondins' progress to the Champions League quarter-finals this season.
South Africa star: Gourcuff will feature for France this summer
But with coach Laurent Blanc leaving his post to take over the Francejob from Raymond Domenech after the World Cup, Gourcuff is weighing uphis options.
A move to the Emirates would see France international link up with his former Bordeaux team-mate Marouane Chamakh.
But Lyon are poised to scupper any such move with the French club ready to spend £21million to make the move happen.
Interviewed in French daily L'Equipe, Lyon president Jean-Michel Aulassaid: 'We will sign a strong midfielder which will cost between 15 - 20million Euros. 'It could be him - for Gourcuff, I saw his contract andhe has a get-out clause of up to 25 million Euros. If he wants toleave in August, we will break the bank.'
Gourcuff has won 17 caps for France, scoring one goal, and is a member of Domenech's World Cup squad.
Manchester City eye £22m Yoann Gourcuff as Laurent Blanc departure pushes star towards Bordeaux exitBarca risk riling Arsenal by reminding Gunners their skipper longs for homeCity face Dzeko decision time as clock ticks on Wolfsburg star's £34m clauseARSENAL FC