The two clubs have held talks in recent days and the Blues are cautiously optimistic of getting a deal done, despite the Gunners’ £35m asking price
Manchester City and Arsenal are negotiating the transfer of Alexis Sanchez, Goal can confirm.

The Gunners are resigned to losing Alexis in January and have informed City that they want around £35 million for the Chilean.

City are unwilling to match that amount but sources have told Goal that the Premier League leaders are hopeful they can avoid a repeat of the protracted summer saga by tying up a deal long before the transfer deadline at the end of this month.