Alexis Sanchez is expected to move from Arsenal to Manchester United during the January transfer window.
Bayern Munich withdrew from contract negotiations with Alexis Sanchez last summer due to unrealistic wage demands and a fear that he would disrupt the dressing room, according to German football journalist Raphael Honigstein.
The Arsenal forward has been at the center of speculation this month linking him with a move to Premier League rivals.
Manchester City were expected to sign Sanchez last summer but Arsenal cancelled the transfer having been unable to find a replacement.
City's interest was reignited upon the opening of the January transfer window, but the Telegraph have reported that the Chilean has now agreed a contract with Manchester United.
The Red Devils will reportedly pay Sanchez a weekly wage of around £350,000 a week, and such demands were clearly balked at by by Bayern.
BTW, Bayern pulled out of negotiations with Alexis Sanchez in the summer because they felt his wage demands were unrealistic and would ruin the dressing room.— Raphael Honigstein (@honigstein) January 17, 2018
City were also evidently reluctant to meet both Arsenal's and the player's demands, limiting their valuation to a maximum of £20m.
Former United defender Gary Neville, speaking on Monday Night Football, questioned City's decision to withdraw their interest.
“If Sanchez had two years left on his contract you'd have to pay Arsenal £75m to £80m and him £200,000 to £250,000 a week," he said. "It would cost you £100m.
"He's going to cost £100m anyway so I'm not quite sure what City's economics are, particularly when they've spent £50m on Kyle Walker and the package of his wages over five years might cost £80m.
“They're willing to put more into Walker than they are Sanchez. I'm struggling to see why it doesn't make sense for City to pay more to get Sanchez because ultimately it seems to me City think they can get him cheaper than the market would be offering for a player of that quality. That's what doesn't make sense to me.”