United boss Sir Alex Ferguson and Manchester City chief Roberto Mancini were battling it out with Barca and Italian giants Inter Milan and Juventus for the signature of the highly-rated £22-year-old Chile international.
Indeed City chief executive Garry Cook and his United counterpart, David Gill, both had meetings with Udinese's transfer supremo Gino Pozzo last week to try and persuade the Italian Serie A side to sell their prize asset to them.
However, reports in Chile are claiming that European champions Barcelona have won the race after the Catalan giants' sporting director, Andoni Zubizarreta, and vice-president, Josep Maria Bartomeu, offered £25million up front and a further £7million in performance-related clauses.
It was always claimed that Sanchez preferred a move to the Nou Camp, while Chile coach Claudio Borghi will reportedly allow the player to leave their pre-Copa America training camp in Santiago to fly to Spain to put pen-to-paper on his contract.
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