Arsenal and Mikel Arteta are reportedly already discussing potential transfers, with the former midfielder nailed on to become the Gunners boss.
The Independent claims Arteta has also drawn up a list of the backroom staff he wants to join him at the Emirates.
Manchester City are insisting that full compensation is paid, but there is not expected to be any issue there.
The state of the Arsenal squad has come up in discussions, with the club hierarchy understood to be concerned with how bad performances had become.
The club had hoped to see a bounce in performances having appointed Freddie Ljungberg that would allow them time to assess their options, but have been alarmed at the poor response from the players.
There are now plans for a clear-out, with many high-profile sources complaining that “too many of the players don’t care”.
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Ljungberg himself is said to have become frustrated with the attitude of the squad, some of which in turn complained about training sessions under the Swede.
Ljungberg will meet with the club on Thursday to discuss is own future, although there is an expectation he will stay on as an assistant.