The Premier League leaders feel the overall price for signing the Chile forward this month - transfer fee, agent costs and wage demands - is now too high and must come down.
Sanchez has always been a target for City and they offered £60 million (A$104 million) for the 29-year-old, without success, last summer.
And he hopes Arsene Wenger can engineer an exchange deal so Arsenal can acquire a new star man.
While everyone excitedly awaits the next move in the ongoing Alexis Sanchez transfer saga, the Metro seem to think they have the scoop on the Chilean's destination, thanks to social media. The first time he insulted me, I had a response, a response that I know touched the point where he really feels hurt.
"If a player doesn't find a massive club, he will have to go [to the end], and even if you don't want to extend his contract, the players will want to go to the end of their contract". Arsenal will bank more cash and have a decent player in Mkhitaryan who can help compensate the loss of Sanchez and likely departure of Mesut Ozil in July.
The Arsenal boss confirmed that the club would be in the market for a replacement, should Sanchez leave in January.
Lacazette has now gone nearly 10 hours without finding the back of the net for Arsenal
Sanchez has familiarity with City, as he previously played under manager Pep Guardiola at Barcelona.
When asked if United were interested in signing the 29- year-old Chilean global, who is out of contract at the end of the season, Wenger said "nothing is really concrete at the moment". "I said hello", replied Conte with a smile.
"I don't think it is ethical or correct to be speaking about players of other clubs", he told reporters.
"Honestly I believe, with inflation we have at the moment, players going to the end of the contract will happen more and more", Wenger added.
"I want to be focused on what we have to do on the field".
"There are two possible routes and we want to explore both of them with 100 percent commitment".
Africans Outraged Over 'Racist' Trump Remarks, Demands Apology
Senator Lindsay Graham (R-SC) did not say that the President used the language Senator Dick Durbin (D-IL) has accused him of. The U.S. president is hurting himself both at home and overseas with his latest comments, some Africans said.