This is according to reports from The Times, which suggest that the French international - whose current deal with the Gunners is set to expire at the end of June - is free to talk to other clubs as of Saturday and has told his fellow players that he firmly anticipates joining the champions a free transfer.
Sagna's future at Arsenal has been a hot topic for several months now, with the player having failed to commit his future to the club who initially signed him from Auxerre back in 2007.
The right-back - who currently earns around £60,000-per-week at the Emirates Stadium - will reportedly play his last game for Arsenal in the FA Cup final clash with Hull City on Saturday with his employers having rejected his latest wage demands.
Arsenal fans will presumably be sad to lose Sagna, particularly to Manchester City who have a notable track record of taking players from the Gunners in recent years.
If he does indeed move to the Etihad Stadium as expected, Sagna will join ex-Arsenal teammates Samir Nari and Gael Clichy in the North West.
Kolo Toure also moved to Manchester City from Arsenal in 2009, but has since departed the club.
Indeed, Manuel Pellegrini's immediate need for a new right-back of Sagna's quality does not appear to be obvious.
In experienced Argentine Pablo Zabaleta, Manchester City already boast one of the most consistent and dependable defenders in the Premier League.
However, with considerable doubts concerning the future of Micah Richards, it appears that Pellegrini could require a replacement soon.