Liverpool have entered the race to sign Alexis Sanchez from Arsenal with Manchester City and Manchester United believed to be frontrunners in the race for the forward. The Chilean has refused to sign a new deal at the Emirates. And having rejected a transfer in the summer after failing to land a replacement, the Gunners are warming to the idea of letting him leave in January than on a free.

The Mirror reports that the Reds are keen on Sanchez and believe there is a chance to land the Chilean should there be a straight choice between them and United. City are reportedly pulling out of the race given news of Gabriel Jesus' return from a knee injury earlier than expected which has given the others some hope in completing the transfer.

However, the only problem that the Reds are likely to face is matching the wages which the Manchester clubs are capable of providing, which could turn out to be the deal breaker for Liverpool. The report states that City are prepared to pay around £285,000-a-week for the 29-year-old striker while United will pledge over £300,000-a-week to grab the South American.

The Reds are keen to strengthen their squad this January and finish in the top four, which is their prime objective this season. They have already completed a world record deal for Virgil van Dijk and are pushing hard to convince RB Leipzig to part with Naby Keita in January.

Arsenal will sanction Sanchez's sale if they receive a fee of £35m ($48.1m), as reported by the BBC, and also find a replacement in the January transfer window. Arsene Wenger has refused to discuss the reports linking his star player to United but stressed that he will only be allowed to leave if they bring in a player to fill his position.

City are not willing to pay over the odds for the South American forward and have also been deterred by news of his agent Fernando Felicevich also demanding £5m ($7m) as a part of the deal to take the overall tally to £40m ($53m). The Gunners will be overjoyed by the prospect of more competition, given that it opens up space for a bidding war.

"A bidding war is always beneficial to the club who can take advantage of it but we are not in that. I maintain what I said many times, that normally he should stay here until the end of the season, but we will see," Wenger explained.

Alexis Sanchez
Sanchez's future looks set to grip the January transfer window. Getty Images