The Iranian-born midfielder is expected to join Pep Guardiola’s side from A-League outfit Melbourne City - also owned by the City Football Group - but he will likely be sent out on loan once the transfer is completed.
City are understood to be putting the finishing touches on a deal for the teenager, with a fee in the region of £280,000 expected to be paid to Melbourne for the youngster’s services.
PSV Eindhoven are also believed to be interested in the player, while Serie A side Roma were credited with an interest as well, but it has been widely reported that Celtic are the front-runners to acquire the 19-year-old on a deal similar to Sky Blues winger Patrick Roberts, who joined the Hoops on an initial 18-month loan deal fin January 2016.
Able to play in attacking midfield or out wide, Arzani made three appearances from the bench at Russia 2018, becoming the youngest Socceroos player to appear at a World Cup.
In the same month he was awarded the Harry Kewell Medal for the best Australian male Under-23 player, following on from his selection in the A-League Team of the Season and A-League Young Footballer of the Year award.
At club level he has made 26 appearances for Melbourne over the last two seasons, scoring twice.
Asked about Arzani prior to Celtic’s Champions League qualifier against Rosenborg, Brendan Rodgers said: “He came on [at the World Cup] and I have an awareness of him. There’s nothing to add to that.”