Paris Saint-Germain could pip both Manchester clubs to the signing of Alexis Sanchez after reportedly offering him more money to join them.
City officials fear that the Arsenal striker will leave England's shores and head across the channel to Paris, according to the Sun, after PSG tried to tempt Sanchez with a huge signing-on fee.
The Ligue 1 giants are said to have held discussions with Sanchez and his agent over a possible free transfer move next summer, with talks having taken place during the recently closed summer window.
Sanchez is supposedly demanding a staggering wage of £400,000-a-week - a salary PSG are not willing to pay - but Unai Emery's side believe that matching City's £275,000-a-week offer with a bumper signing-on fee will convince the 28-year-old to move to Parc de Princes.
A source close to the talks said: “City’s pursuit of Alexis could be in trouble. Pep is sure he wants to join the club but Paris are sniffing.
Not like they really need him anyways where will all the attacking players actually play— paul LFC (@paulandrewwild) September 22, 2017
“They still have the funds to sign him and can beat City’s wage offer. They will also pay him a huge signing on fee. Sanchez can talk to European clubs in January and sign a pre-contract. He’s in a very strong situation.”
City appeared to have won the race for the Arsenal contract rebel before August's deadline day after they had a £60m bid for Sanchez accepted by the Gunners.
However, Arsene Wenger and the club's hierarchy pulled the plug on the deal after they failed to land a suitable replacement - rumoured to be Monaco's Thomas Lemar - for Sanchez before the 11pm cut off point.
With Sanchez due to be in the last six months of his deal at Emirates Stadium in January, City had hoped to offer a smaller sum of around £20m to persuade Arsenal to part with their talisman ahead of next June.
However, with Sanchez free to talk to foreign parties from the turn of the year, PSG could land him with a pre-contract agreement and scupper Pep Guardiola's chances of being reunited with Sanchez.
PSG would definitely have to sell a few of their own stars to balance their financial fair play books - Neymar and Kylian Mbappe having set them back in that regard already - with the likes of Edinson Cavani, Julian Draxler and Angel Di Maria all reportedly up for the chop.