Alexis Sanchez is reportedly confident he will see a move to Man City.
But Arsenal have told his representatives they will refuse to let the Chilean go to a domestic rival.
Sanchez is hoping for a reunion in Manchester with his former boss at Barcelona according to The Daily Mail.
He’s angling for a deal worth upwards of £300,000-a-week.
The 28-year-old has been vocal in what he wants for his future.
Last weekend he admitted he wanted to play in the Champions League, something that the Gunners can’t offer him.
Despite Arsene Wenger saying he will not be sold, Sanchez hopes the threat of a free transfer will eventually help facilitate the move.
Arsenal now have to decide if they are prepared to lose him for nothing when his contract ends at the end of the season or agree to a deal to a direct rival that would see them pocket in-excess of £50 million.
The South American has so far shunned Arsenal’s attempts to sign a new long term offer.
A deal worth £275,000-per-week with a 20 per cent increase if Arsenal qualify for the Champions League was unsuccessful.
If the London club aren’t able to secure Sanchez they would prefer to send him abroad than be up against him in domestic match ups.
However his hefty price has scared some away like Bayern Munich who pulled out of the race.
Sanchez has also been linked to a move to PSG.