The Spaniard reportedly turned down Tottenham Hotspur and his former club over offers regarding a coaching role.
The 34-year-old retired from football at the end of Arsenal's 2015-16 campaign and it was reported at the time that he'd make a move into the dugout.
The Guardian claimed at the time of his retirement that the Gunners and Tottenham had offered him coaching roles, but The Mirror has claimed that he rejected his former club and their bitter North London rivals to join the Sky Blues.
The report has suggested that Pep Guardiola's presence at Manchester City played a role in his decision, with the two knowing each other from the Barcelona academy.
It goes on to suggest that the Spaniard has an "outstanding" future in management and, having left Arsenal on good terms, would not be adverse to the idea of returning one day.
He joined the North Londoners from Everton in 2011 and captained the club to two FA Cup crowns in 2013 and 2014, though injury limited him to just six Premier League starts in two years.