The Sunday Mirror says City have made another move for red-hot Chile winger Sanchez after Barcelona failed to come up with the cash.
Sanchez looked certain to relocate to the Nou Camp when Barca made their move for the Udinese winger last month, prompting City to drop their interest.
But when the European champions offered youngster Bojan Krkic as a makeweight in the deal, that opened the door for City to re-enter the bidding.
City were unwilling to match Udinese's initial £35million valuation of Sanchez.
But they are ready to do business now that the Italians have slashed £9m off their asking price.