Manchester City have now ended their interest in Arsenal star Alexis Sanchez.
Sky Sports News are now reporting that City manager Pep Guardiola and Chairman Khaldoon Al Mubarak have decided that the cost of the deal is too expensive for a player who will be out of contract in the summer.
Sanchez was widely expected to move to the Etihad either this month or next summer, although Manchester United have now offered to pay Arsenal a higher fee, and the player a more lucrative contract so they are now firm favorites to secure his signature in the coming days.
Arsene Wenger is also interested in Armenian playmaker Henrikh Mkhitaryan being included in any potential deal, and feels he can help the talented attacker regain the type of form he showed with Bundesliga side Borrusia Dortmund.
Reports have also emerged tonight suggesting that City are also concerned that signing Sanchez this month will upset the balance of their squad, although Guardiola remains keen on signing another centre back during this window.