A couple of months ago the two clubs did agree a deal on summer transfer deadline day.
The expectation is that City will still have to pay over £50m to get Sanchez in January.
City nearly completed a deal for Sanchez last summer, only for the transfer to fall through at the last moment due to the Gunners' inability to secure a replacement for the Chilean.
Asked whether the duo would remain in north London, Wenger said last month: "I am not the only one who can decide that". If it is my decision, then yes. "I rule it out [them leaving in January]". As long as they are here they give their best for the club.
Much of the attention at Emirates Stadium this season has focused on the contract rebels, as they continue to run down their respective deals.
Guardiola's men have already plundered in 46 goals in just 15 Premier League games so far this season and Sanchez's arrival could see one of Gabriel Jesus, Sergio Aguero and Raheem Sterling demoted to the bench.
The 28 year-old, who came close to sealing a £60m deadline day move to the Etihad is starting to pick up form for Arsenal, which is flawless news for the club if they decide to part with him in January.
City are aware they will likely to have to come in with a big offer, if also to avoid the situation going to the wire in the way it did in August, and are prepared to do so even though the player will be available on a free in the summer. "Who knows if they still want to leave?"
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