It made it a disappointing deadline day for Pep Guardiola's side with their other target West Brom defender Jonny Evans remaining at The Hawthorns.
No formal approach has been made for Sanchez - though that is expected to happen soon. Arsenal fans don't seem to mind too much that the man who's staying put really wants to leave. The City boss, who is considered by many to be the best coach in world football, will have spent over £250m on transfers this summer if the Sanchez deal goes through.
One player who did land a move away was England global Oxlade-Chamberlain, who completed the formalities on his transfer to Liverpool.
Arsenal's position was always that they would only sell Sanchez if they could sign a high-calibre replacement and they are pleased with their summer business.
City are said to have offered their England winger Raheem Sterling plus cash in a bid to convince Wenger to part ways with his prize asset. However, a swap deal might make them reconsider their stance.More news: US Dollar Index and Treasury Yields Are Strong on August 31
Arsenal will enter the final day of the transfer window with uncertainty still surrounding a number of their players.
Jurgen Klopp has been targeting Virgil Van Dijk for a long time in this summer transfer window.
However, if a deal can be struck, the Gunners will try again for Lemar.
As the Russian Federation 2018 World Cup draws nearer, Sterling, just like other English players will be looking for first team football, in order to increase his chances to be called up into Gareth Southgate's squad.
According to reports, Saints could consider selling him if Arsenal offer Walcott in return.