Manchester City have no intention of meeting Arsenal's £35million valuation of Alexis Sanchez, potentially opening the door for Jose Mourinho to swoop.
Sanchez is desperate to leave the Emirates this month and has told team-mates he expects to go.
The Chilean, out of contract this summer, wants to work with his ex-Barcelona boss Pep Guardiola again but City are not willing to agree to Arsenal's demands.

That could give United optimism in their pursuit of Sanchez, which emerged on Thursday, should Ed Woodward be ready to release significant funds in the winter window.