A failed deal for Thomas Lemar killed the chances of Alexis moving in the summer, and with Liverpool the front-runners for the Monaco man now, Arsene Wenger has turned his attention to the Leicester City star.
The news has encouraged Manchester City's hierarchy that a deal in the region of £30m could be struck for Sanchez this month with the forward still Guardiola's No. 1 target, though reports suggest that the two clubs are still some way from agreeing a fee.
The signing has strengthened talk of Jonny Evans, Samuel Umtiti or Inigo Martinez singing as City go in search of another defender.
Egypt's Salah wins African Footballer of the Year prize
Aubameyang was Bundesliga top scorer with 31 goals last season, holding off Bayern Munich and Poland ace Robert Lewandowski. Liverpool's Egyptian winger Mohamed Salah was awarded, in Accra, Ghana where the CAF 2017 ceremony was held.
Lee added that City are "unwilling" to part with that amount, although according to James Olley of the Evening Standard, Arsenal want even more than the sum quoted, with a valuation of £40 million said to have been placed on Sanchez.
The injury to Gabriel Jesus is thought to have had an impact.
This could force City to make their move, but Arsenal already have a price tag in mind they will have to reach.
Sanchez has made it clear that he wants to join up with Guardiola at City and ESPN FC has been told that Arsenal have chose to accept a transfer fee now rather than let him leave for free at the end of his contract.
City face Liverpool at Anfield on Sunday and would need to register the former Barcelona man on Friday for him to participate against Jurgen Klopp's men.