While the Cityzens don't need Sanchez to win the Premier League, he might be the added firepower they need to truly compete for the Champions League this season.
Meanwhile, Arsenal will listen to offers for Francis Coquelin this month as they press ahead with a planned squad overhaul.
Having been knocked out of the FA Cup by Nottingham Forest on Sunday after resting key players, Wenger is intending to select a virtual full-strength team in the first leg of their League Cup semi-final against Chelsea on Wednesday night.
Arsene Wenger rotated his squad significantly as they lost to the Championship side.
Former Manchester United defender Evans has been linked with a January move to the Emirates Stadium, with Manchester City also reported to be interested. It appears nearly certain they will be losing the forward, and if he does stay beyond the current window, they'd receive no transfer fee for Sanchez at the end of the season.
Liverpool have plenty of money to spend in January, following the sale of Coutinho to Barcelona, but where they will invest the money remains to be seen.
Additionally, with Jesus set for a stint on the sidelines, Sanchez would help preserve the dynamism and fluidity that has been a trademark of this City attack in 2017-18.
Manchester City are increasingly confident of sealing a move for Arsenal forward Alexis Sanchez during this month's transfer window, sources close to City have told ESPN FC.
Considering Man City are still in the running for four trophies this season, could Pep Guardiola move for the Arsenal star?