The Chile international has been stalling on signing a new contract at the Emirates Stadium, putting the Gunners in a weak negotiating position as he has just a year to run on his current deal.
City have been joined by the likes of Chelsea, Bayern Munich and Paris Saint-Germain in chasing Sanchez this summer, and now believe they can get the deal done.
According to the Daily Mirror, the Sky Blues are preparing to make their first official offer for the 28-year-old after the Confederations Cup.
City expect a deal can be done at around £50million, which looks good value for money in today’s market, with Sanchez showing himself to be one of the best players in Europe last season.
The former Barcelona man scored 30 goals and contributed 13 assists to Arsenal’s cause in all competitions, including scoring in victories in both the semi-finals and final of the FA Cup.
Alexis Sanchez’s Premier League season
Sanchez only joined Arsenal three years ago but has seemingly grown frustrated at the north Londoners due to their recent lack of success in major tournaments.
Arsene Wenger’s side have won just two FA Cups in Sanchez’s time at the club, rarely coming close to winning the Premier League title and even falling out of the Champions League qualifying places last season.