Song, who has enjoyed a reasonable season with West Ham on loan, will not be staying at Upton Park beyond the summer and has attracted interest from AC Milan and neighbours Inter.
However, he is also being discussed at City and Chelsea as an option for their squads owing to their need to add homegrown players.
Arsenal signed Song from Bastia when he was 17. Barcelona will sell the 27-year-old for around £6million.
Inter had considered Song as an alternative to Yaya Toure but Inter vice president Javier Zanetti said today: 'Yaya? We are at the stage where we hope that we can finalise a deal, he would help us make a step up in quality.'
Chelsea and City both retain interest in Everton defender John Stones, as reported by Sportsmail earlier this month, but Chelsea, in particular, are keen to sign the 20-year-old who has been named in the provisional England Under 21 squad.
Credit: Simon Jones/SportsMail
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