The story surrounding the future of Chilean global Sanchez was one of the talking points of the summer transfer window, with all of Bayern Munich, PSG, Chelsea, Manchester United and Manchester City having expressed an interest in the 29-year-old.
However, Arsenal want him out the door in this window which has opened the door for United, who have now come in aggressively and are ready to meet the asking price - which gives Sanchez the option of where he wants to play.
City is unwilling to match the transfer fee and related costs to sign Sanchez that are being offered by United or Chelsea, which is the latest contender for his signature, a person familiar with negotiations told The Associated Press.
Manchester City have called time on their long-protracted efforts to sign Alexis Sanchez, according to reports on Monday evening.
Arsenal threw away a one-goal lead at the Vitality Stadium as Bournemouth stormed back to take the points late on and Arsene Wenger explained his reasons for leaving Sanchez out of the squad at the final whistle.
City were close to signing him on deadline day in August, until the Gunners pulled the plug on a £55m deal when their plans to sign a replacement fell through.
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FC is reporting that Manchester United has become the favorite to sign the Chilean worldwide, who was left out of the Gunners squad on Sunday in Arsenal's 2-1 defeat to Bournemouth.
It is understood the wages being demanded by Sanchez would have put him ahead of all City's star men, something the club decided they would not do.
Mourinho also said after Monday's game that he was "relaxed" over the move and said he believed United had a "chance" at Sanchez if he leaves Arsenal.
"I'm just trying to protect him and the team, so let's make sure he stays with us or that he leaves us". I don't know what is going to happen in this transfer window. "Probably there are other clubs also interested and trying and I shouldn't talk about a player who is an Arsenal player".
"Yes (it's imminent). Don't read too much in it because even I don't know which way it will go", said the Frenchman. He was only a substitute in Arsenal's League Cup semifinal against Chelsea last Wednesday.