Manchester City will today hold crunch talks over Alexis Sanchez - with Manchester United said to be waiting to swoop.

Reports have suggested the Blues have already abandoned any chance if a deal in this transfer window - and that the Reds will pay the transfer and wage demands to land the Arsenal man.

But, while City are on the brink of pulling out, a meeting between chief executive Ferran Soriano, football director Txiki Begiristain and manager Pep Guardiola will finally determine what they do.

City had an agreement in place with Sanchez last summer, believed to be a deal worth around £275,000 a week, which would make 29-year-old Sanchez their biggest earner.

And they have told Arsenal they will not budge from paying £20million for a player who will be available for nothing in six months.

United are said to have expressed an interest several weeks ago, and be willing to meet Arsenal's £35million asking price, Sanchez's £400,000 a week wage demands, and a hefty agent's fee.

Sanchez has been desperate to play for Guardiola, but he is now thought to be even more desperate to get out of Arsenal this month - and would consider other options in order to do so.

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Guardiola believes Sanchez could give City's Champions League campaign the extra firepower it needs, with Sergio Aguero poor against Liverpool yesterday and Gabriel Jesus out injured until next month.

But City are refusing to be held to ransom, especially with Sanchez's agent also making huge demands.

United's intentions remain unclear – they have said nothing on the matter, leading to some suspicion that the whole thing is a ruse cooked up by both Arsenal and Sanchez's agent to drive up the fee and wages.

The Reds face Stoke on Monday night and they were not expected to make a move for the player - who was left out of Arsenal's defeat to Bournemouth - ahead of the Old Trafford clash.