Manchester City are determined to beat Manchester United to the signing of Alexis Sanchez if he leaves Arsenal this summer, sources have told ESPN FC.
Cooperativa in Chile has reported that Sanchez wants to leave but remain in England, with City his preferred destination, and a source told ESPN FC that Pep Guardiola's side are hopeful of success but face strong competition from United.
Chelsea and Paris Saint-Germain are also reportedly interested in the 28-year-old, who will have just one year remaining on his current contract at the end of the season.
Another source told ESPN FC that the Chile international is frustrated at the lack of quality at sixth-placed Arsenal, who are now in serious danger of missing out on Champions League football next season following Monday night's 3-0 defeat at Crystal Palace.
Despite heading into the final year of his current deal, Arsenal don't want to sell Sanchez and could demand £40 million for the forward, who has 64 goals in 124 starts for the club.
Guardiola is a long-time admirer of Sanchez and signed him for Barcelona in 2011, but they spent just one season together before the coach left the Camp Nou.
They were reunited at the Emirates on April 2 when City drew 2-2 in the Premier League. Guardiola rushed onto the pitch at full-time to hug Sanchez and praised him in his postmatch news conference, describing him as "one of the best players in the world."
City are set to spend heavily again this summer to add to their squad after failing to compete for the Premier League and being knocked out of the Champions League in the round of 16.
While Guardiola will concentrate on defensive signings, he has been critical of his attack's inability to convert chances.
Sanchez will add some extra firepower and his versatility to play anywhere across the front three will also be a positive for Guardiola, who wants stronger competition among his forwards.