The Chile international’s contract expires at the end of the season and he will be able to leave on a free transfer if a new deal is not agreed.
It’s understood that Sanchez is desperate to join up with Pep Guardiola this month, and the forward’s agent Fernando Felicevich has encouraged City to submit an offer.
The Daily Mirror reports that Arsenal would be open to doing business with City and will consider bids in excess of £25 million.
The Gunners had the chance to squeeze £60m out of City for Sanchez in the summer but ended up pulling the plug on the deal as they could not sign a replacement in time.
And now Arsene Wenger will be forced to settle for a lower amount, or risk losing him for nothing at the end of the campaign.
Pep Guardiola, however, is cautious about upsetting the balance of his squad with Sergio Aguero already unhappy about his position at City.
Meanwhile, Wenger has promised to sign a ‘top quality’ replacement if Sanchez does leave the club.
‘We will do but when is very difficult to say because that does not depend only on us. We are open to any position for the exceptional player that can give us a plus,’ said the Arsenal manager.
‘It depends a little bit on the injuries as well.
‘On the other hand it depends if we manage to extend the contracts of the players who are at the end of their contracts in June.
‘It will depend on that as well. We have to take the consequences of those decisions and respond to it.
‘How we cope with that, first of all we have not lost them yet, and secondly we will respond to that by bringing in players of top quality.
‘This club has lost many, many big players and has always responded well.’
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