The Arsenal talisman has been heavily linked with an Emirates exit this summer.
Sanchez, 28, is demanding a bumper pay rise to stay in north London under Arsene Wenger.
City, Paris St-Germain and Bayern Munich are all chasing the Chile international this summer.
And according to the Daily Mail, Pep Guardiola is ready to offer Sanchez £320,000-a-week to join City.
They say the former Barcelona boss is willing to make Sanchez City's top earner.
The attacker's wages would also be topped up by performance-related bonuses and image rights, which could take his earnings to a staggering £400,000-a-week.
Sanchez is due back at Arsenal training tomorrow.
However, the winger caused a storm on social media after claiming he was 'sick'.
Sanchez netted 30 goals for the Gunners last term, with Arsenal just missing out on Champions League football.