Manchester City have ended their interest in signing Arsenal's Alexis Sanchez, Press Association Sport understands.
The Premier League leaders have decided to pull out of a potential deal during this month's transfer window because of the costs involved.
It is understood that two other clubs, thought to be Manchester United and Chelsea, are prepared to pay more than City – in terms of transfer fee, wages and other costs – to sign the player.
Manchester United are odds-on favourites at 1/3 with Sky Bet to sign Sanchez this month.
Red Devils boss Jose Mourinho was keeping quiet after the 3-0 victory at home to Stoke on Monday night.
"I'm not going to speak about hypothetical situations. He is an Arsenal player. There are probably other clubs interested - I feel I shouldn't speak about an Arsenal player," Mourinho told Sky Sports.
Chelsea are second in the odds at 4/1 to complete a deal and Manchester City have moved out to 8/1.
Sky Sports News understands Chelsea are interested in signing Sanchez this month.
Antonio Conte rates the forward highly, and revealed last Friday that he tried to sign the then Udinese player when he was Juventus manager.
Sanchez can be backed at 12/1 to remain at Arsenal for at least the rest of the season.
Odds correct at 2300 GMT on 15/01/18.
City went close to signing the Chile forward in August after having a bid of £55million plus £5million in add-ons accepted but a deal could not be completed as Arsenal did not find a replacement.
It was thought they could move for the 29-year-old again in January but, given their superb form and other attacking options, their preference became to wait until he comes out of contract in the summer.
An injury to Gabriel Jesus reignited the potential of a deal but City were not prepared to pay a transfer fee of more than £20million while Arsenal were thought to want £35million.
That opened the way for other clubs to enter the race to sign the wantaway player.
City were convinced that Sanchez did want to join them but it appears his desire to leave Arsenal this month now outweighs that.
City decided they did not want to match the figures being offered by other clubs. It now seems the total package clubs are prepared to pay for Sanchez, in terms of fee, wages and potential player exchange, adds up to more than City would have paid last summer.
All the key figures at City - chairman Khaldoon Al Mubarak, chief executive Ferran Soriano, director of football Txiki Begiristain and manager Pep Guardiola - are in agreement the deal is not right for the club.
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