Hughes' future at City is in doubt, after an inconsistent season on the pitch, as the club's Middle East owners look for success in Europe without the Welshman at the helm.
And the Mirror claims Wenger's position has come under scrutiny after another disappointing season for the north Londoners, with their only remaining hopes of silverware lying in the FA Cup and Champions League.
City owner Sulaiman Al Fahim is clearly ready for a fresh recruitment drive after missing out on Kaka six weeks ago and a shortlist has been drawn up to replace Hughes.
A source told the newspaper: 'The people who own City have a big respect for Arsene and what he has done at Arsenal."
Former Chelsea manager Jose Mourinho, Croatia coach Slaven Bilic and Diego Maradona - Al Fahim is a fan of Argentine football - have also been linked to the role.
Meanwhile, Arsenal captain Cesc Fabregas has admitted he would consider his future at the Emirates Stadium if Wenger left the club.
The Spanish international insists his departure would be a huge blow for Arsenal, and said: "I have heard the rumours about Wenger leaving for the past three years.
"If he left the club then of course I would consider my own future and whether I would leave the club.
"I am happy at Arsenal and believe that we and Barcelona play the best football in Europe.
"But Wenger is a main part of that."