Jose Mourinho, the United manager, refused to rule out a move for Sanchez last night, describing the Chilean as a "phenomenal" footballer and claiming it was hard to turn down the chance to sign players of that calibre when they became available.
Sanchez was believed to be on his way to Manchester City either in the winter or the summer transfer window, with the club agreeing terms on a contract with the player's representatives.
Manchester City were believed to be favourites to sign the Chile global thanks to their position in the Premier League and the relationship Sanchez already has with manager Pep Guardiola.
The story is based on comments made by the Italian at a news conference on Friday, when he was asked if other clubs should compete with Manchester City to try to sign Sanchez.
The deal has also been complicated by the fact that Manchester United have, apparently, shown an interest and may be willing to offer more cash than City.
"I would not like my players, when they see me on TV or read the newspapers, (to hear) the manager talking about another (player) and thinking they are not important".
"Honestly I can not tell you much more at the moment about this situation", Wenger said.
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All the latest Premier League transfer news and odds, including Alexis Sanchez, Javier Hernandez and Jonny Evans.
"Manchester City seemed certainties to sign Sanchez but the revelation that they won't meet Arsenal's demands has sparked a huge turnaround in the odds". We do not believe in signing a player just to do something.
Quizzed on whether selecting Iwobi sent a mixed message on team discipline, Wenger said, "There's one thing to punish someone individually and a second thing to punish everybody".
"I am focused on Liverpool versus City", Guardiola told reporters. "I've never questioned his commitment or attitude". You can buy him for a price that is not so high, I'm hearing that the amount is around £20m.
"Alexis is an exceptional football player, he's a world- class player and if that happens (and he leaves) we have to find a different balance in the team".
Jose Mourinho has refused to rule out the departure of Henrikh Mkhitaryan after the Armenian has been linked with a move to Arsenal.
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