Manchester City continue to pursue a transfer deal with Arsenal for Alexis Sanchez and are offering Raheem Sterling as a make-weight.

City bought Sterling from Liverpool in 2015 for £49 million. Sterling is bemused by the position of City, but is open to the idea of moving back to London as he started his career with QPR's youth team.

Sanchez has refused to sign an extension with Arsenal as he enters the final season of his contract.

City initially were willing to offer around £50 million for Sanchez, but Arsene Wenger has insisted he wouldn't be sold. City's latest offer includes Sterling and approximately £20 million.