The Telegraph says City are set to bid £60million for Sanchez.
City are keen to sign Sanchez but Arsenal are refusing to sell to a rival.
However, City believe they can still land the Chile international this summer and will test Arsenal‘s resolve.
And he will be offered a contract worth around £400,000 a week to quit the Emirates.
Chelsea are also linked to the player but the report claims the Blues are far behind City in the chase to capture Sanchez’s signature.