Manchester City have rejected the £35m price tag on forward Alexis Sanchez, putting Arsenal at risk of losing the Chilean for free.
It was gathered that the Gunners’ fee for the player plus another £5m for agents, are making Pep Guardiola’s side have a rethink.
City are not ready to offer the North London side more than £20m for Sanchez since he will be free in summer when his contract expires.
With Manchester United also interested, City are prepared to risk losing out on the player altogether.
City believe Sanchez is keen to join them and link up with manager Pep Guardiola for a second time, following their successful spell together at Barcelona.
Also, Arsenal manager Arsene Wenger is willing to let the former Barcelona player go for free as he insists they would not sell him without a replacement.
“A bidding war is always beneficial to the club who can take advantage of it, but we are not in that,” Wenger said in a match conference on Friday.
“It’s not that I don’t want to inform you. I don’t want to give you wrong information. At the moment, nothing is decided one way or another.
“I maintain what I said. Many times, that normally he should stay here until the end of the season, but we will see.”