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Arsenal Transfer News: Latest Rumours on Alexis Sanchez and Riyad Mahrez

Arsenal will reportedly sell Alexis Sanchez to Manchester City for £35 million in January if they can sign Riyad Mahrez from Leicester City.

The Gunners will only allow the Chilean to join manager Pep Guardiola's side if they can bring in a top-quality replacement and are hopeful they can land Mahrez, per Steve Stammers of the Sunday Mirror.

Mahrez "would welcome a move to Arsenal," but Arsenal may face competition from Liverpool, who are after a replacement for Philippe Coutinho.

The Brazilian has joined Barcelona in a huge deal worth £142 million, per Sid Lowe at the Observer.