The move comes after several Arsenal players came into contact with Olympiacos and Nottingham Forest owner Evangelos Marinakis during a Europa League game against the Greek side at the Emirates Stadium two weeks ago.
Marinakis revealed on Tuesday that he had tested positive for the Coronavirus disease.
Although no Arsenal player has shown symptoms of the virus, they will complete a 14-day self-isolation, which ends on Friday, as a precaution.
A statement read from the Premier League read: ‘Tonight’s game between Manchester City and Arsenal has been postponed as a precautionary measure following the announcement yesterday that Evangelos Marinakis has contracted COVID-19.
‘Thirteen days ago, Olympiacos played at the Emirates Stadium in the Europa League and Mr Marinakis, the Greek club’s owner, met with several Arsenal squad members and staff.
‘Following medical advice, Arsenal FC and Manchester City FC consider it is necessary to postpone their fixture due to be played this evening to give time to fully assess the situation.
‘The Premier League has therefore agreed that tonight’s game will be rearranged.
‘We understand this will cause inconvenience and cost to fans planning to attend the game but Arsenal, Manchester City and the Premier League have agreed that the short notice of Mr Marinakis’ infection means there is no alternative but to take the time to complete a proper assessment of risk.
‘All necessary measures are being taken and the Premier League currently has no plans to postpone any other matches.’
The UK has recorded six deaths and more than 380 cases of the Coronavirus disease.