It is also understood that Henrikh Mkhitaryan was suggested as a potential makeweight in the deal.
And Sherwood thinks Sanchez holds the key to where he goes next.
“I think whatever agreement is if there is one already for City to buy him, I don’t think MU coming in for him will make any difference,” Sherwood told Sky Sports’ The Debate.
Alexis Sanchez is widely tipped to join Manchester City
I don’t think he’ll get bullied into going to United if his favourite destination is City
Tim Sherwood
“The player will hold the key, because he will say to Pep ‘I don’t care what United bid, I’m coming to you’.
“Unless Arsenal want to be really strong and say if you don’t go to United for £30/40m, then you’re not going anywhere.
“I think the kid will sit tight until the summer.
“I don’t think City will be held to ransom.
GETTY
Tim Sherwood doesn't think Alexis Sanchez will be forced into joining Manchester United
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“If he’s got a chance to go to City, then he goes.
“If it’s United or staying at Arsenal, and going to City in the summer, then he sits tight.
“I don’t think he’ll get bullied into going to United if his favourite destination is City.”