Forrest has been at Celtic his entire professional club football career so far and has established himself as an important player in manager Brendan Rodgers’s side.
The 19-year-old, who can operate as an attacking midfielder or as a winger, has yet to feature for the Glasgow giants.
Celtic legend Wallace believes that Arzani will be a better footballer than Forrest, and has also criticised manager Rodgers for not giving him any chance so far.
The former Scotland international has also suggested that Arzani should look to leave Celtic.
Wallace told The Scottish Sun: “Arzani is a good little player, and Brendan Rodgers disappointed me on that one.
“He’s saying it’s going to be a while before he plays. Well, why are Celtic paying the wages and not Man City? If I was the board at Celtic, I’d have kicked the manager’s a*** out the door.
“Why would you take Arzani for two years if he isn’t going to play in your team? The kid, for me, will finish up a better player than James Forrest."
Wallace added: “When I heard Rodgers say he wasn’t ready, I was baffled. Why take the boy if he thinks he’s not ready? If I was the lad, I’d ask to go back to City or go somewhere else to get a game.”
Getting the chance
Arzani was brilliant during his time at Melbourne City and has also played five times for the Australia national football team.
Celtic manager Rodgers should be looking to give the youngster a chance after the international break.