Not entirely sure why you have put it in your heads that he's pretty set on going to City.
Let me put you in the picture.
If Bayern Munich want him and Manchester City want him Arsenal will push him towards Bayern. Not only that but Bayern are the much more attractive option. Arsenal would take a 10m hit in the transfer fee just to stop him from going to City. Any sort of moved to Manchester City will be blocked by Arsenal.
We're talking about Alexis Sanchez here, not Samir Nasri. Alexis isn't driven by money he's driven by winning big trophies, something Bayern can almost certainly offer him whereas City is more 50/50 as to wether or not big trophies will come being in such a competitive league.
This is Alexis' last chance at a big move as he's soon to be 29 years old, why would he waste his time attempting to win trophies with city when he can be guaranteed big trophies at Bayern?
He either goes to Bayern to win things or stays at Arsenal for the money, because Arsenal will offer him just as much as City.
Case closed.