Sanchez is out of contract at the end of the season and is wanted by Manchester City.

Pep Guardiola has refused to rule out a move for the Arsenal star in the January transfer window.

While Gunners boss Arsene Wenger has contradicted himself on whether they will cash in on Sanchez, get him to sign a new deal or keep him until the summer when he would leave on a free transfer.

But according to football insider Ian McGarry, Sanchez could join Manchester City next month because Arsenal are already planning his replacement.

"I can add a little bit of fuel to that fire because I know for a fact that Arsenal have put the feelers out on three different potential replacements for Alexis Sanchez in the January window," McGarry told The Transfer Window podcast.

"Albeit I'd say one is realistic and the other two are unrealistic in terms of moving in the January window.

"But the fact that they are actively looking to recruit - in a time when Arsene Wenger really buys [January] - suggests to me that they are seriously considering cashing in on Sanchez in January rather than allowing him to leave for free in the summer.

"And I also understand that personal terms between Sanchez's representatives for the player and Manchester City have been agreed.

"The player is very happy with that and I think it's not unfair to say that Alexis Sanchez already saw himself in a sky blue jersey in August this year only to have that fall down by the Thomas Lemar to Arsenal deal fall down.

"And I still think he sees himself in a sky blue jersey and that could well happen as early as two weeks from now."