The Gunners face City at Eastlands tomorrow with both sides hoping to step up their challenge to Barclays Premier League leaders Chelsea.

While the massive investment may have seen City post record losses of £121.3million, it appears to be paying off on the pitch as Roberto Mancini's men currently lie just two points behind leaders Chelsea, three ahead of Arsenal.

Wenger has long championed the development of youth, preferring to mould a world-class talent like captain Cesc Fabregas rather than simply just going out and buying it.

The Arsenal manager accepts each philosophy has its own obstacles.

"I am happy where I am and I work in the way I work," said Wenger.

"I could do it [spend millions] as well, but Mancini has his own problems and I have my problems.

"I am quite happy with my problems, because I have enough.

"It is a different way - we have advantages as well to clubs who have less resources than us, Coventry to Arsenal is less resources, so we have to accept that."

Wenger continued: "City now will be one of the contenders because they are not at the end of an investment cycle, it looks like they are at the start of it, so you have to consider them as one of the teams that will challenge.

"In our own way, we are at the start of a cycle. That's what is good in football. Every club can work with his own rules."

Arsenal look set to come up against former striker Emmanuel Adebayor tomorrow.

Adebayor made the headlines for the wrong reasons last season, both for his over-the-top goal celebration in the 4-2 victory and then stamping on Robin van Persie's face, which earned him a three-match ban.

Wenger, however, insists there was no sense of ill-feeling toward the former Arsenal favourite, sold for £25million during the summer of 2009.

"Frankly, we never spoke about that," Wenger said.

"We are all focused on putting in a good performance on Sunday. "We have played so many games since that we don't even care about that now."