Manchester City are ready to drop their interest in Arsenal forward, Alexis Sanchez, giving their city rivals Manchester United a free run at the player.
City have been favourites to sign Sanchez since failing with a £60million deadline day bid last August.
But United blindsided their neighbours this week, by launching a £35million bid for the 29-year-old.
Arsenal want £35m for Sanchez, while the player’s agent, Fernando Felicevich, is also said to be demanding a fee of around £5m for facilitating the deal.
With Sanchez’s wage demands around £300,000-a-week, City are prepared to pull the plug.
It is however understood that Jose Mourinho will do whatever it takes to get the player and in fact, a deal could be close.