Arsenal said players and four staff had been isolated at their homes after coming into contact with the owner of Greek club Olympiakos, Vangelis Marinakis, who has since tested positive for COVID-19, AFP reported.
"We are strictly following the government guidelines which recommend that anyone coming into close contact with someone with the virus should self-isolate at home for 14 days from the last time they had contact," an Arsenal statement said.
"As a result, the players are unavailable for tonight's (Wednesday's) match against Manchester City and the Premier League has decided the game should be postponed."
The first postponement in the Premier League, which has a global following, follows widespread disruption to football and other sports across the world.
Arsenal was knocked out of the Europa League by Olympiakos on February 27. Marinakis, owner of the Greek club and English side Nottingham Forest, announced on Tuesday that he had tested positive for the coronavirus.
But Arsenal said the players and staff, who met Marinakis after the game at the Emirates Stadium, will return to work on Friday ahead of Saturday's trip to Brighton.
Olympiakos players, staff and board members have all tested negative, the club said.
Nottingham Forest also said none of their players had tested positive.