German champs Bayern Munich have reportedly backed out of the deal for Arsenal playmaker Alexis Sanchez due to spiralling costs involved.

The Chilean would have been a great addition to the ranks at the Allianz Arena but his wages and transfer costs, especially in the face of serious competition for the player, has deterred the Bundesliga side.

Sanchez has barely a year on his deal with the Gunners. He seems reluctant to continue at the Emirates. At the moment, Manchester City are leading the race for his signature. Pep Guardiola is keen on the former Barcelona forward. The Spaniard employed him at the Nou Camp and remains in awe of the talented player that he wants to bring him to the Etihad.

Arsene Wenger had vowed to retain Sanchez or sell him abroad to avoid helping the competition. However, there are rumours that a swap deal is in the pipeline, Sanchez for Sergio Aguero. For now, nothing is concrete.

What is concrete is that Arsenal’s £30 million bid for Monaco winger Thomas Lemar has fallen through. The French side remain ambitious, and even if they were to release the star it would be for much more. The 21-year old was crucial to the Ligue 1 title victory and he is among the youngsters in the team. The French side want to be the buying side rather than otherwise else the tweak in their policies.

Arsenal have now turned on the heat on the chase of Leicester City winger RiyadMahrez. The Algerian has been a target for a while now. Numerous sides are hoping to nab the player from the Foxes set-up and the player is not as insistent on remaining unlike last summer. He had an underwhelming 365 days which another would surely affect his career prospects.