Sounds like City are operating under similar valuations as us anyway. If we match their bid I agree with @goon, I think he'll choose us. City have already signed Kovacic and have Rodri already - don't think he'll risk going the way of Kalvin Phillips if Arteta's vision of Arsenal with him at the centre of it is an option.
Course, a 300k a week wage with all sorts of add ons from unrelated third party companies could make him change his mind