City withdraw as Jose Mourinho's Manchester United set to sign Alexis Sanchez

Manchester: Manchester City has decided to end its interest in signing Arsenal forward Alexis Sanchez. City is unwilling to match the transfer fee and related costs to sign Sanchez that are being offered by other clubs, or to make him its top earner, a person familiar with negotiations told The Associated Press on Monday.

The person spoke on condition of anonymity because they were not authorized to comment publicly about the negotiations. City's hierarchy held a meeting with manager Pep Guardiola on Monday about whether the club would make a bid for Sanchez. City was close to signing the Chile international on the final day of the summer transfer window but a deal fell through.

Manchester United has been strongly linked with Sanchez, who is out of contract at the end of the season.

"Not confident but ... not unconfident," United manager Jose Mourinho said of his club's prospects of signing Sanchez. "Just relaxed, with the feeling he is an Arsenal player, that he can stay there, but also with the feeling that he can move. If he moves, I think we have a chance.

"Most probably, a player like him, he probably has other big clubs who are interested. And who knows? I think him, (Arsenal manager Arsene) Wenger, (Arsenal chief executive Ivan) Gazidis, they are the ones who really know what's going to happen. I don't know anything about it. Today, I don't have one single piece in information so let's see what happens."