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Manchester United are firmly in the running to sign Alexis Sanchez from Arsenal, with Jose Mourinho believing the club can not afford to miss out on "phenomenal" players like the Chile worldwide.

Man City manager Pep Guardiola brought Sanchez to Barcelona in 2011 and they were together for a year. "Alexis, everyone knows how good he is, but I am not going to answer about Alexis or other players".

With Sanchez's contract expiring in the summer, the transfer fee could be as low as £25m - less than half what City bid for him last August.

Arsenal manager Arsene Wenger gave an update on the 29-year-old's status in a news conference Friday.

"At the general level what I can say is myself and the Manchester United board, the owners, we don't believe a lot in the January market".

They are also willing to throw in Henrikh Mkhitaryan as part of the deal, which could tempt Arsenal, as they want a replacement before they allow Alexis to leave.

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Manchester City are unwilling to pay more than £20m for the player whose deal at Arsenal expires in the summer, while title rivals Manchester United also want to sign the Chile global.

If a deal can not be agreed with any club, Sanchez will be able to leave when his contract expires in the summer - a situation Arsenal are keen to avoid as they would receive nothing.

"If I was a player I would play for the club where I am and with 100% commitment", he added.

"No, it doesn't worry me personally", the Germany global said in quotes reported by The Guardian. "I am focused on Liverpool".

Sanchez and playmaker Mesut Ozil are out of contract at the end of the season, leaving Arsenal potentially set to lose one or both of the key players cheaply this month or for free in June. "That's how I feel more comfortable".

Manchester United, who first made enquiries for Sanchez back in September, are also among Malcom's admirers. Wenger admitted a bidding war could help Arsenal but said that was not the current situation. The only word I can say is the what everyone says - he is a phenomenal player.