Manchester City have officially ended their interest in Alexis Sanchez as they feel the potential deal has become too expensive.
It is understood City would have had to commit to spending in excess of the £60m deal they provisionally agreed with Arsenal in the summer to compete with offers already on the table for the forward.
Pep Guardiola had talks with City chairman Khaldoon Al Mubarak yesterday and both agreed the deal was excessive for a player available on a free transfer at the end of the season.
Manchester United are his likely destination though Chelsea are reported to have shown interest. Sanchez is reported to have agreed terms with United ahead of his potential move and is waiting for Mkhitaryan to agree terms with Arsenal.