Bayern Munich have gone cold on Arsenal attacker Alexis Sanchez.

The Daily Mail says the German champions have been holding talks with the Gunners, as well as the Chilean and his agent having initially targeted the forward as their primary transfer target this summer.

But Bayern have been left frustrated on both fronts concerning the Premier League club's asking price and Sanchez's wage demands, and appear to have lost interest in completing a deal.

Instead, Carlo Ancelotti has turned his attention to Atletico Madrid's Yannick Carrasco, says L'Equipe.

Bayern are set to offer £44million for the Belgium international, but completing a deal will be far from easy.