Arsenal transfer rumour: Pep Guardiola gives Manchester City the go-ahead to sign Alexis Sanchez

Pep Guardiola has given Manchester City the go ahead to sign Alexis Sanchez from Arsenal in January after losing Gabriel Jesus to a knee injury. The Citizens were close to completing a deal for the forward last summer but the Gunners backed out after being unable to find a replacement.

M.E.N reports that Guardiola is in conversation with director of football Txiki Begiristain and chief executive Ferran Soriano to complete a cut-price deal amid fears that they won't be able to continue a quadruple challenge with Sergio Aguero as their sole striker option. Jesus' knee ligament injury has left City light up top, with the Brazilian set to be out for up to six weeks.

Jesus is expected to be back in contention when the Champions League resumes next month, but Guardiola believes his players are feeling the effects of what has been an exhausting period. City were hoping to sign Sanchez on a free next summer, with the player currently in his final six months of contract, but interest from Paris Saint-Germain has urged Guardiola to think over a move this month.

Chelsea have also recently stepped up their interest in the forward, with manager Antonio Conte suggesting that they may look to make a move for the 29-year-old if an opportunity presents itself.

"We must stay calm. I don't like to speak about other players of other teams but you are talking about two big and strong players, top players for their roles, and Vidal is one of the best in the world but Sanchez is the same as a striker," Conte said, before their 2-2 draw against Arsenal at the Emirates.

The January window provides Arsenal with one last chance to cash in on the Chilean before he can leave for nothing in the summer, but Arsene Wenger insists there are no offers currently on the table.

"No, we have not been contacted by anyone," Wenger told a press conference ahead of their draw against the Blues. He added: "This club has lost many big players and responded well. But you want to keep your best players."

Meanwhile, the Gunners have confirmed the signing of Greek defender Konstantinos Mavropanos from PAS Giannina. The centre-half has become the Gunners' first signing of the January transfer window but is expected to immediately leave the club on loan.