Striker Harry Bunn fired a hat-trick as the Boy Blues stormed into a 5-0 lead over the Gunners - Emerick Hippias and Alex Henshall also scored before Arsenal were allowed to pull a couple back late on.
Academy manager Mark Allen said: “It was a pleasing performance and a fine start to what will be a long season. All the hard work that the players put in on their pre-season tour to Berlin paid off.
“We played some great football at times, the team spirit was clear and their creative play was complemented by plenty of endeavour. We’ll kick on from here without getting carried away.”
Henshall, Courtney Meppen-Walters and Ellis Plummer celebrate the win by joining up with England Under-17s.
Devante Cole scored for City’s Under-16s as they were held 1-1 by their Arsenal counterparts.