Manchester City end their interest in signing Alexis Sanchez as Manchester United lead the way... and Chelsea are making a late play for Arsenal star too

The Premier League leaders will continue negotiating with Arsenal, though they are determined not to pay the Gunners' £35 million asking price
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Manchester City are still hopeful of signing Alexis Sanchez in January despite the Gunners holding out for £35 million and a reported approach from Manchester United, Goal understands.

The Blues’ plans for Alexis remain unchanged, despite news of rival interest emerging on Thursday, and the club are also believed to be working on at least one other deal.

It was reported on Thursday that United have approached Arsenal regarding Alexis, although senior City sources are themselves unaware if that is merely mischief making - either on the part of agents or their rivals - or a genuine attempt to stage an eleventh hour coup.

Either way, the Blues will continue to negotiate with Arsenal in search of an agreement before the end of the winter transfer window.

The Premier League leaders believe Alexis is determined to work with Pep Guardiola and that he would reject any moves elsewhere.

City were of course in a similar situation with Dani Alves last summer. The Brazilian right-back had agreed personal terms, negotiated his exit from Juventus and even had lunch with Guardiola in Barcelona.

Within days of that meeting, however, he had signed for Paris Saint-Germain, leaving City standing at the altar.