Manchester City are close to agreeing a January deal for the transfer of Arsenal star Alexis Sanchez, reports Goal.

The two clubs are understood to have held talks in recent days, and are confident a deal can be agreed in the coming weeks.

City had originally offered £25 million for the Chile international – who is out of contract at The Emirates in the summer – however the Gunners are believed to be holding out for a fee closer to £35 million.

Sanchez saw his £60 million deadline day move to The Etihad fall through in the summer, with manager Arsene Wenger reluctant to let go of his prized asset ahead of the new season.

However what has been a hit-and-miss start for both player and club to the new campaign, and Sanchez’s increased desire to leave North London – it appears Wenger will now part ways with the former Barcelona star to avoid losing him on a free come the end of the season.

Alexis was left out of the Arsenal squad for their FA Cup third-round tie at Nottingham Forest on Sunday, which the Gunners lost 4-2. That would allow him to play for City in the FA Cup, providing a deal is agreed.

He would also be eligible to play in the Champions League for City should a deal be agreed by the end of the month, with sides in the competition allowed to field one player who has previously played in the Europa League group stages with a different club.

Sanchez, who joined Arsenal from Barca in 2014, has made 165 appearances for the Gunners, scoring 85 goals.