All smoke and mirrors. Arsenal claim anywhere but city, but do they realise that if he does not extend his deal he can sign a free transfer agreement in January with a European based club such as PSG, bayern, Inter, AC Milan etc, and move in the Summer? Almost certainly he will do that if Arsenal don't sell to City this Summer. A mid-season announcement from Sanchez, AC Milan, PSG, etc that he' has a pre-contract agreement for a free transfer move at the end of the season is a nightmare avoid at all costs scenario. "Don't sell to City!" will become "take their money!" as this dawns on Gooners.
I think Arsenal will try and sign Lemar or mahrez and then let City know Sanchez is available, but it wouldn't surprise me if City said we're not interested and let one of the European clubs get him for nothing. If City are interested then we have played a blinder here, and should be able to get him for under £40m as the season approaches.
The transfer moves for mendy, Walker, Ederson were pretty much out in the open as a series of bids were made, but with Sanchez no one knows what City's real intentions are. So far there have been no bids, and Aguero has been assured of his future at City next season. The only thing that seems likely is that Sanchez's time at Arsenal is coming to an end. They have to choose between selling to City, if we are interested, or seeing him announce a free to a European club in January. In all likelihood, the rumour mill will be in full swing by November, and every press conference, Wenger will be asked if he can shed any light on the latest rumour. They have got themselves into a situation where realistically they only have bad options, and must do their best to avoid a worst-case scenario of a free-transfer. The ideal scenario that he stays at Arsenal, leads them to the title and extends his contract on the back of it, looks like a pipe-dream to me, and I am sure most Arsenal fans would agree.