Arsenal star Alexis Sanchez is closing in on a transfer to Manchester United.

According to latest reports, the Chilean could complete his move to Old Trafford later today. Manchester United are confident of making a breakthrough and sealing the transfer soon.

Manchester City have apparently pulled out of the race due to the financial demands and Jose Mourinho is leading the chase for the Premier League forward.

The Chilean is out of contract in the summer and Guardiola was hoping to sign him on a bargain this month. City were prepared to pay around £20m for the Arsenal star in January but Arsenal have set an asking price of £35m.

Furthermore, the Etihad outfit are not willing to pay £10m in agent fees either.

Manchester United, on the other hand, are willing to meet the financial demands of the transfer and the player is likely to end up at Old Trafford soon.

Also, the Old Trafford outfit are prepared to offer Sanchez wages of around £400,000 a week.

Losing out on Sanchez will come as a blow to City. The Premier League leaders were hoping to use him as an alternative to Gabriel Jesus. The Brazilian is out injured for the next few weeks.