Jamie Carragher and Gary Neville got into a heated debate about Alexis Sanchez

"We're not talking about going to play for Salford, we're talking about one of the biggest clubs in the world, Manchester United."

According to several reports on Monday night, Manchester City have pulled out of the race to sign Alexis Sanchez from Arsenal this month. The Chilean forward has been linked with a move to the Premier League leaders since last summer, and he could have joined them on a free transfer at the end of the season. However, Pep Guardiola wanted to sign him in this window, and the club submitted a £20m bid for the 29-year-old. It looked as though Sanchez would join City as soon as Arsenal found a replacement, and personal terms are said to have already been agreed between the club and the former Barcelona forward. Then Manchester United entered the race, submitted a bid worth more to Arsenal - believed to be £35m - and offered the player more money. United are understood to be willing to make Sanchez the fourth-highest paid player in the world - on weekly wages of £350,000 - while City weren't prepared to pay him more than £250,000. City would have had to make Sanchez the highest-earning player at the club to complete the transfer, so they backed away from the deal, as they did not want to pay the Arsenal forward more than current players, such as Kevin De Bruyne. Just before the news broke of City abandoning their pursuit, Gary Neville and Jamie Carragher got into a heated debate on Monday Night Football about Sanchez's transfer situation. Carragher argued that Guardiola's side weren't willing prepared to pay more than United because they had already agreed a deal with the player. However, Neville couldn't understand why a club with infinite financial resources weren't willing to pay what was necessary for a player of Sanchez's quality. "It's not about money. It might be for Sanchez but not for City," Carragher said.

"They're not bothered about an extra £30m, what's that to City? It's absolutely nothing. It's the fact the man, I would say, has given his word that he's going to go to City. He's probably shook hands on a deal. They tried to get him in the summer but Arsenal pulled out of it. I'm sure they've been talking all the way through, saying we'll get you when the window re-opens. Manchester United have come from nowhere and offered more money."

Yet, Neville found it difficult to believe that City have suddenly become prudent in their transfer market dealings. "If all of a sudden City, on Virgil van Dijk and Alexis Sanchez, adopt an approach where they say that's our ceiling, that's where we'll go to and not any further then I wouldn't disagree with it," the former United defender said.

"I'd probably even promote that approach from a football club. However, it's not been how City have acted in the time Sheikh Mansour has been at the club. When Dimitar Berbatov came up, when Robin van Persie came up, Samir Nasri and Carlos Tevez, they've always fought tooth and nail against Manchester United to match them for money."

https://twitter.com/GNev2/status/953162275292176384 Neville then asked why would Arsenal sell to City when United offered them more money. But Carragher said that the situation wasn't about money to the Gunners, as Arsene Wenger needs to sell the player - who has become "a cancer in the dressing room" - this month before they lose him for nothing in the summer.

Neville: "When you are Manchester United you spend £95m on Paul Pogba, you spend £80m on Romelu Lukaku and with the wages you've got £120m and even £150m invested in both of them. Sanchez becomes quite cheap at £100m. if you think about Neymar at £200m and Philippe Coutinho at £140m, I get the point on the morals, but I'm not sure why City won't match them financially. Carragher: "It's not about the money. Neville: "So, you're telling me that City have adopted the height of morality and principle and all of a sudden they can offer less money to a club… Carragher: "It's not about offering less money. Neville: "So, what is it then? Carragher: "They've had a deal, they've shook on a deal and someone's come in at the last minute and offered more money. That's the problem. You can't talk about City not offering big money. The figures being bandied about, it's big money. It's all about the player backing out of a deal."

Neville then took issue with any suggestion that City could offer less money just "because everyone wants to go and play for Pep Guardiola." Carragher said that "if you're an attacking player you'd to sign for Guardiola, if you're a defender you'd sign for Jose Mourinho." You can watch them here: Neville makes some good points, but we agree with Carragher on this one.

• The situation doesn't seem to be about money to City, who can afford to buy any player they want and to pay them whatever wage they want.
• If reports are to believed, they backed out of the deal for two reasons. Firstly, they weren't prepared to make Sanchez a new offer, because they had already agreed personal terms with him, and had seemingly shook on a deal, as Carragher said.
• Secondly, to revise their offer, and compete with United, City would have ended up making Sanchez the highest-paid player at the club, on more money than De Bruyne, the best player in the Premier League. For the sake of dressing-room harmony, with the club competing for four trophies this season, they seemingly weren't prepared to do this, and one can understand this stance.
• And finally, City didn't offer Sanchez and Arsenal less money "because everyone wants to go and play for Pep Guardiola." They had already agreed a deal with the player, and made Arsenal an offer which they felt reflected the fact he was out of contract in June. Sanchez has a more financially lucrative offer on the table from United, one which City aren't prepared to match.

According to reports, Chelsea are also interested in Sanchez, but it does now feel like he'll end up at Old Trafford.