In an exclusive for the Daily Star, David Woods has revealed the two Premier League rivals are considering swapping their marquee attackers: "Discussions have been held about the South Americans switching clubs this summer."
Woods detailed how Sanchez, who played for City manager Pep Guardiola at Barcelona, remains the Citizens' "No. 1 striker target this summer." He also pointed out how Aguero, despite his free-scoring brilliance, "has failed to totally convince Guardiola in the Spaniard's first season at City."
Significantly, the chances of a swap deal happening are boosted by Aguero wanting to remain in England's top flight, according to Woods.
The idea of Arsenal and City exchanging their key forwards appears outlandish, at least on the surface. However, a closer look shows how it could happen.
For one thing, City remain determined to press ahead with attempts to sign Sanchez this summer. The Chilean's contract with the Gunners runs out in 2018, and the Citizens' "belief is growing that they can land Alexis Sanchez in a deal potentially worth worth up to £50million," per David McDonnell of the Daily Mirror.
McDonnell reported City will wait until Sanchez's participation in the 2017 FIFA Confederations Cup ends before testing Arsenal's resolve with a hefty bid.
While Sanchez continues to be linked with a move away from north London, rumours are also growing that Aguero will leave Manchester this summer.
The Argentinian has been named as a €60 million (£52.7 million) target for Paris Saint-Germain should the Ligue 1 side fail to sign AS Monaco striker Kylian Mbappe, per French publication Le Parisien (h/t ESPN FC's Jonathan Johnson).
Tellingly, Johnson pointed out why PSG might have the inside track in any deal for Aguero:
The reference to Aguero's agent could also prove significant. One of his chief representatives, Hernan Reguera, recently told TuttoMercatoWeb (h/t Stuart Brennan of the Manchester Evening News), the striker has only two years left on his contract with City, despite reports he had signed a new deal back in January.
Reguera also seemed to confirm Aguero won't leave the Etihad Stadium this summer: "There is no doubt and fear—Sergio will remain at Manchester City, for sure."
Of course, things could change depending on just how focused Guardiola is on convincing Arsenal manager Arsene Wenger to sell Sanchez. Aguero would surely make an excellent consolation prize if the Chile international left the club.
It's an idea former Gunners midfielder Paul Merson suggested on Sky Sports in May (h/t Lewis Winter of the Daily Express). Given the fact Aguero didn't always have it easy under Guardiola last season, a change of scenery may be the best thing for the 29-year-old, especially since Gabriel Jesus is ready to assume the main striker's role in 2017.
As for Wenger, he would get a prolific striker who still scored 30 times even in a down season, per Whoscored.com. Welcoming Aguero would surely soften the blow of seeing Sanchez join a Premier League rival, at least in the minds of many Arsenal fans.
However, there are practical questions about this rumoured swap deal. The chief one concerns whether Aguero would take a step down to play in the UEFA Europa League next season.
There is also the matter of whether Wenger will relent to City's pressure regarding Sanchez. After all, he knows the bitter feeling of seeing former players win the title with rival clubs, having sold Robin van Persie to Manchester United in 2012 after Samir Nasri joined City a year earlier.
While this looks like a deal sure to benefit both the Gunners and City, it's a little too neat in theory to think it will become a reality this summer. If Sanchez and Aguero are to move clubs, it's more likely Wenger and Guardiola will look to sell them abroad rather than strengthening a domestic rival.