According to The Sun's Daniel Cutts, an unnamed source said:
"City's pursuit of Alexis could be in trouble. Pep [Guardiola] is sure he wants to join the club but Paris are sniffing.
"They still have the funds to sign him and can beat City's wage offer. They will also pay him a huge signing on fee.
"Sanchez can talk to European clubs in January and sign a pre-contract. He's in a very strong situation."
City have reportedly put a £275,000-per-week offer on the table for the Chilean, but Les Parisiens can offer more, particularly as he could be drafted in to replace Edinson Cavani, who earns €800,000 per month (£706,000), according to L'Equipe (h/t TalkSport).
Sanchez has shown his superlative qualities since his arrival at the Emirates Stadium from Barcelona in 2014, per Squawka Football:
While both City and PSG boast an incredible amount of firepower already, the chance to snap up another world-class talent to enhance the prospects of top honours is not to be missed.
The 28-year-old is still working his way back to full fitness this season, but he scored a magnificent goal in Arsenal's 3-1 win over FC Cologne in the UEFA Europa League, per Goal's Chris Wheatley:
He also showed some neat touches as he put on a positive display against Doncaster Rovers in the Carabao Cup on Wednesday, completing 90 minutes for the second time this season:
Aside from Sanchez performing a U-turn and signing another contract at Arsenal, the forward heading to PSG is almost the ideal scenario for the Gunners, as it ensures he would not be moving to a direct rival.
The prospect of reuniting with former boss Pep Guardiola at City will likely appeal to Sanchez, though, and it seems he'll have a tough decision to make regarding his future if it's a choice between the Manchester club and PSG.