Manchester City rekindle interest in Alexis Sanchez as Arsenal pursue Riyad Mahrez as replacement

Manchester City are set to make a massive U-turn over Alexis Sanchez as they prepare a £25m ($33m) deal to sign the forward in January after missing out in the summer.

Arsenal rejected an offer for the Chilean on deadline day last summer after failing to sign a replacement but may be forced to reconsider this time around as they look to get something out of the player, who will be available on a free in six months.

The Mirror reports that Pep Guardiola is set to propel City's quadruple charge after a comfortable 4-1 win over Burnley in the third round of the FA Cup and believes the addition of Sanchez would go a long way in keeping themselves alive in all competitions. News of Gabriel 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. Meanwhile, another report by the Mirror states that the Gunners would be willing to sell for a fee no less than £35m ($47m) provided they are able to sign Riyad Mahrez as replacement.

Arsenal made a concerted attempt to sign Thomas Lemar from Monaco on deadline day in August but failed in their efforts, which in turn scuppered Sanchez's move to City. Liverpool are now believed to be the favourites to sign Lemar to fill the void left by the departure of Philippe Coutinho to Barcelona.

The Gunners would again face competition for Mahrez from Liverpool should their deal for Lemar break down. The Reds are reported to have already made contact with Mahrez for a move. Chelsea have also emerged as surprise contenders for the Algerian as manager Antonio Conte looks to add more quality to his side after the midfield arrival of Ross Barkley.

However, much will depend on Leicester's inclination to sell, with manager Claude Puel insisting Mahrez is happy to continue with his current employers.

"I want to keep all my best players and Riyad is an important player in the team for us. When I discussed things with him, he had a good attitude and is enjoying his football," Puel explained.

"He is a happy player and likes to play with his teammates. His statistics have improved, with assists and scoring. Of course, I want him to continue all this good work.

"He is happy with the squad. It is speculation, but for me, it is no problem. He is happy to play with this team, he enjoys his football and this is the most important thing."