Report: Chelsea rivalling United for Sanchez; City withdraws from race

Chelsea is making a late push to sign wantaway Arsenal forward Alexis Sanchez, according to The Telegraph's James Ducker, with Manchester City ending its pursuit of the Chilean.

Manchester United is now in pole position following a dramatic turnaround in negotiations.

City aborted the operation after it became clear the total cost would surpass the £60-million fee it agreed with Arsenal last August, the BBC's Simon Stone added. Guardiola and senior club officials apparently felt that fresh demands made by Sanchez's agent, Fernando Felicevich, were excessive.

City was long considered the favourite to land Sanchez after agreeing to a fee with Arsenal last summer. Negotiations fell apart because the Gunners failed to bring in a replacement in time.

Sanchez reportedly preferred to work again under Pep Guardiola, who coached the 29-year-old for a season at Barcelona, but things changed once United entered the race last week. The Red Devils apparently indicated a willingness to match Arsenal's £35-million asking price - a fee City deemed prohibitive.

United, however, has no issue paying Sanchez a maximum £20-million signing bonus and another £10 million in agents' fees, according to Ducker.

Sanchez is also set to become the Premier League's highest earner on a contract worth as much as £400,000 - far more than the reported £250,000 per week on offer at City.

Arsenal manager Arsene Wenger said Sunday that Sanchez - who is out of contract at the end of the season - would sort his future within the next 48 hours. He was omitted from the squad that lost 2-1 away to Bournemouth.