Arzani's move from Melbourne City to Manchester seems more likely by the day with an immediate loan away from Pep Guardiola's side inevitable.
Dutch side PSV Eindhoven have been heavily linked previously and will be coached by outgoing Socceroos assistant Mark van Bommel.
But Arzani could now be set to link up with Socceroos teammate Tom Rogic in Scotland with Celtic linked to a potential loan move for the 19-year-old.
After overseeing his side's 3-1 win over Rosenborg in Champions League qualifying, Celtic's manager Brendan Rodgers confirmed Arzani is on his club's radar.
"All I know is that he is a young Australian, a very talented player and went to the World Cup where he looked very, very good,” said Rodgers.
“The club are working hard behind the scenes to try and get some signings in. I think he’s been one that has been identified.
“It is not my job. Let’s see what players the club brings in. I work with the players that are here, develop them, improve them, that is my job.”
Celtic are no strangers to transfer dealings with City having taken Patrick Roberts on loan last season and paid an undisclosed fee for Olivier Ntcham.