The Citizens wanted to land Sanchez in the summer transfer window and saw a £60 million deadline day move fall through, with Arsenal failing to land the player's replacement, Thomas Lemar, from Monaco.
Speculation surrounding Sanchez's future dominated headlines throughout the transfer window, alongside fellow contract rebel Mesut Ozil.
The Chile global, 28, has previously worked with Manchester City boss Pep Guardiola at Barcelona, and he could link up with his former manager in a blockbuster deal that would strengthen the hand of a City side, who have won their last 20 games in all competitions. They have a part to play in that as well.
"I rule it out". In my head they stay until the end of the season.
And despite a reluctance to strengthen the squad of their title rivals, Arsenal believe accepting a hefty transfer fee will benefit the club in the long run and are willing to accept City's bid.
The World Cup victor has entered the final 12 months of his current Arsenal deal to throw up the possibility of Ozil leaving the north London club on a free transfer next summer.
Guardiola's men have already plundered in 46 goals in just 15 Premier League games so far this season and Sanchez's arrival could see one of Gabriel Jesus, Sergio Aguero and Raheem Sterling demoted to the bench.
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