The 29-year-old is out of contract at the end of the season and Arsenal had originally been prepared to let him leave the club on a free when his deal expired.
However, Sanchez’s attitude has irked his team-mates this term and he’s become a divisive figure in the Arsenal dressing room. So much so that senior members of the squad have urged Wenger to sell so that the Gunners can fully concentrate on the second half of the season.
Arsenal have subsequently softened their stance and are willing to let the Chilean leave in this window, with City believing they can get the deal done this week, report the Independent.
Sanchez was desperate to move to the Etihad last summer but City have retained their interest in the former Barcelona man and Pep Guardiola is even more keen to get the deal done following the news that Gabriel Jesus will be out for two months.
City face Bristol City in the League Cup on Tuesday before a mouth-watering clash against Liverpool at Anfield on Sunday.
Sanchez would need to be signed and registered by Friday for him to have a chance of featuring in the clash against the Reds but it looks likely that the deal will finally get done.