The 15-year-old has exercised an option to leave the Saints, opening up the opportunity for him to find a new club.
The midfielder is highly touted and has already played Under-21s football, which has increased interest in him from elite club.
The defending Premier League champions are currently in pole position to sign Miles, but Arsenal are still in the race and have not given up hope.
Both Premier League outfits have tabled offers to Miles, who will now decide where the right place for him to develop will be.
Southampton are renowned for developing high-quality young players with the likes of Gareth Bale, Theo Walcott, and Adam Lallana coming through the Saints youth system.
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Man City and Arsenal will battle it out for Harrison Miles
Man City and Arsenal have spent the last couple of seasons battling for the Premier League title, but that’s now spilling out into the transfer market.
The teenager has made 14 appearances in the under-18s Premier League, scoring twice and providing one assist.
Having played as a central and defensive midfielder, Miles has showcased versatility and adaptability at a young age.
With Miles having decided that his future does not lie at St Mary’s Stadium, the battle to secure his signature will heat up.
They face competition from rivals Man United to sign the 16-year-old to a professional contract before his 17th birthday.
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