Man City pull out of Alexis Sanchez deal… Chelsea join in

Another twist in the wonderfully winding Alexis Sanchez transfer saga.

On a day in which both Manchester clubs continued to creep their noses in front in the race to sign the wantaway Arsenal star, one has admitted defeat and the other has learned of some new competition. After starting the January transfer window as clear favourites to sign Sanchez, Manchester City reportedly pulled out of their pursuit of the Gunners forward while Manchester United hosted Stoke City in the Premier League. Manchester Evening News report that, following a day of meetings, the league leaders decided that the figures being touted were far too high and decided to walk away from the deal. City had initially offered £20 million for Sanchez, whose contract at the Emirates is up in the summer, at the start of the month but their noisy neighbours threw their hat in the ring with a greater fee for the 29-year-old. The weekly wage of £400,000 on offer from Manchester United also far exceeds the £275,000 which City were prepared to give Sanchez and, unwilling to do battle with the Red Devils any longer, City backed down. United are also reportedly willing to offer Henrikh Mkhitaryan as part of the deal. However, City's withdrawal does not turn the pursuit into a one-horse race as Chelsea have dramatically entered the fray with a late bid for the Chile international. MEN claim that Chelsea's sudden interest could push the fee higher than the £35 million that United were prepared to pay. Just last week, Blues boss Antonio Conte encouraged his board to consider looking at Sanchez as an option in January, given his current contract situation.

"I think it is a good investment," Conte said of Sanchez's availability. "We are talking about a top player and you can buy him for a price not so high. The amount is around £20 million. Maybe a normal price for Alexis Sánchez is €80-90million. This is my opinion."