City have been heavily linked with the Chilean international throughout the summer, but Gunners boss Arsene Wenger has always been adamant he is not for sale, particularly to a Premier League rival.
Sanchez is into the final 12 months of his contract and there is no sign of him penning a new one, meaning he could walk away for free in 12 months, but Wenger is cool with the situation and willing to take that risk.
However City counterpart Pep Guardiola is desperate to get the player on board now and reports claim he will test Arsenal's resolve one last time by making a £60million bid before the transfer window closes.
It has also been suggested that Sanchez is now willing to wait 12 months before leaving on a free transfer, but an offer from City could lead to him pushing for a move away from the Emirates Stadium.
City are also said to be willing to match the player's £400,000 a week wage demands, but convincing the Gunners to sell appears to be the hard part.