Iwobi and Iheanacho were both on parade for Nigeria in the friendly against Senegal but are set to become opponents at the Emirates.
And the Gunners’ winger is eyeing a win over his compatriot.
“We’ve had a bit of banter this week,” Iwobi told Sky Sports.
“He was trying to persuade me to come to Manchester City and I was trying to persuade him to come to Arsenal. I’d like to play against him.
“We’ve talked about the game a little bit, but we’ve been focused on playing for Nigeria. I’ve just got to prepare now and beat him!”
Recently, Arsenal have not enjoyed enough success against big oppositions in the English Premier League. But the 20-year-old believes it is a run Arsenal Wenger’s men can end against Pep Guardiola’s City.
“We need to change that record,” he said.
“That’s in the past though – we need to prepare for the present. I believe with the players we’ve got – we’ve been working hard – that we can do it.
“We’ve not been doing as well as we should’ve been doing. But every team goes through a rough spell and it’s ours at the moment. I’m sure we’ll bounce back.
"Judging on how everyone did on international duty – everybody did well – then the confidence will slowly be getting back.
“We’ll prepare this week and we’ll do our best. Hopefully we can come out with the result we need.
“Every game is vital – we’re taking it game-by-game. We just need to concentrate, prepare right and do the job.”The north London outfit are fifth in the English topflight log, five points behind fourth-placed Liverpool, although with a game less.