The highly-rated finisher has been tipped to move to England for more than a year, with the Gunners and Spurs the likely candidates for his signature 12 months ago.
Sir Alex Ferguson is thought to have been an admirer of the goal-getter since he impressed against the Red Devils in the Champions League.
Arsenal boss Arsene Wenger has already added to his forward line ahead of the new campaign by recruiting Marouane Chamakh from Bordeaux.
While Spurs supremo Harry Redknapp may be on the lookout for a frontman with Robbie Keane and Roman Pavlyuchenko rumoured to be on their way out of White Hart Lane.
However, it now appears that Manchester City may have the final say with Roberto Mancini’s side set to splash the cash once again, having already signed David Silva and Jerome Boateng with Yaya Toure also set to arrive.
Dzeko has a £32.5 million buyout clause in his current contract that the Blues' Premier League rivals appear unwilling to meet, leaving the Eastlands outfit in pole position to sign the striker.
The forward has netted 48 times in just two seasons for the German side - now managed by Steve McClaren - including 26 goals in the club's 2008/09 title winning campaign.
Earlier this week Manchester City were told by Wolfsburg that they had no interest in letting the Bosnian Footballer of the Year leave.
But after reports in Germany suggested that City had made another bid for Dzeko, the 23-year-old has let his desire to move on be known.
"I now want to represent a big club so I can develop further, this has now become my big desire. I hope and I believe VfL [Wolfsburg] will let me leave now,” he told Kicker.
"I am aware of the clauses in my contract. Now I have received a good offer I have to talk about it with the manager and the managing director."
By Nick Poyser
