The Gunners had been hopeful of agreeing a new deal with the Chilean, or at least selling him abroad, but now believe he is desperate to join City
Arsenal fear Alexis Sanchez is determined to leave the club this summer and are now braced for a bid from Manchester City, Goal understands.
The Gunners had hoped to persuade Alexis to extend his current contract, which expires next summer, or at least to sell him abroad as a last resort.
But sources close to the situation have informed Goal that the Gunners are now deeply concerned they will lose the Chile international to City following talks with his representatives.
Alexis' future had been on hold while he participated in the Confederations Cup, though Arsenal had prepared a huge pay rise in an attempt to keep him at the Emirates Stadium.
The Gunners now believe there is little chance of him even listening to their offer.
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