The Gunners have rebuffed the initial £50m bid, but Manchester City are still determined to land Sanchez before Thursday's deadline.
Report's earlier on Tuesday suggested that Raheem Sterling could be used as part of the deal, but it is understood Pep Guardiola's side are committed to a cash-only deal.
There is yet to be an improved offer but sources close to the City hierarchy are confident they can prize the Chilean away from the Emirates.