Pep Guardiola has offered to include Raheem Sterling, in the deal to try and sign Sanchez before Thursday’s transfer deadline.
His Arsenal counterpart, Arsene Wenger, has always insisted that Sanchez is not for sale even though he only has one year left on his contract.
But Mirror Sport understands there has now been direct contact between the clubs and City have made the shock offer involving Sterling.
City believe a player-plus-cash deal is the only way that the Gunners may be tempted to sell Sanchez. Arsenal may only be tempted by around £70m but City have not offered that in straight cash.