The UK Mirror reports that Jesus’ contract will rise to €17m-a-year which is around £280,000-a-week, if the Gunners qualify for the Champions League.
The 25-year-old is Mikel Arteta’s top transfer priority, although Chelsea and Tottenham Hotspur are also keen.
Arteta is looking to bolster his frontline, after both Alexandre Lacazette and Pierre-Emerick Aubameyang left the Emirates in the last six months.
Arsenal have tied down Eddie Nketiah to a new long-term deal, handing him Thierry Henry’s old No14 shirt.
But Nketiah is the only senior centre-forward in Arteta’s squad and the manager knows he needs reinforcements.
Jesus has a decent record at City, where he has scored 95 goals in 236 games and helped them win four Premier League titles, four EFL Cups and the FA Cup.