The Montenegrin striker faces England tonight in the World Cup qualifying group stage, and the report claims Arsenal and City are both keen to bring him to the Premier League at the end of the season.
The 23-year-old has been valued at £28m by his Serie 'A' club, and the Gunners are reportedly willing to match that fee.
The report even claims Arsenal are willing to bump up Jovetic's current £65,000-a-week salary to £90,000-a-week if he agrees to join the club.
The Arsenal board are ready to sanction a summer of spending after watching north London rivals Tottenham Hotspur leapfrog them in the Premier League table.
Champions League qualification for next year's tournament could be crucial, with the Gunners currently four points adrift of fourth-placed Tottenham.
Chelsea occupy third on 55 points, while Manchester City are not yet completely clear on 59 points.
After an eight-year trophy drought, Arsene Wenger is reportedly prepared to spend big on a striker and Jovetic has been identified as one of his top targets.
But he's set to face stiff competition from Premier League rivals Manchester City. Roberto Mancini sold Mario Balotelli in January, while Edin Dzeko has been linked with a return to Germany at the end of the season.
The City boss could be set to overhaul his striking options this summer then, with a rival bid for Jovetic reportedly on the cards.