The Premier League champions would rather sell him aboard than to a title rival but Arsenal would be an easier deal to complete.
According to the Daily Mail, Arsene Wenger is looking at Nastasic as a replacement should Arsenal lose their captain Thomas Vermaelen to Manchester United.
Arsenal kept a close eye on the Serbian defender during his time with Fiorentina but missed out on him when City sealed a deal for the 21-year-old in 2012.
Italian clubs Inter and Roma are also keeping tabs on Nastasic with both clubs making enquiries as to his availability although no bids have been made as of yet.
Manchester City: Potential summer transfer targets
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Arsenal will wait to see what happens with Vermaelen before making any moves for Nastasic with Wenger still unwilling to sell his club-captain.
Nastasic played just 13 league games last season but was named City’s Young-Player-of-the-Year for the 2012/13 campaign. He also has 13 caps for Serbia to his name.
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