City made their first attempt when Roberto Mancini was manager in the summer of 2011 but Sanchez, then with Udinese in Italy, opted for Barcelona.
And he was on current boss Manuel Pellegrini’s transfer radar last summer when he joined Arsenal.
Pellegrini is a huge admirer of his fellow Chilean but said UEFA’s financial fair play sanctions and the fact that one of his four strikers, Alvaro Negredo, did not leave until deadline day thwarted City’s attempt last year.
“It was not easy,” said Pellegrini. “He was very expensive and, when Barcelona sold him to Arsenal, we still had four strikers.
“Alexis is young, enthusiastic and improving. I am very happy he is repeating in England what he did for Barcelona.”
Pellegrini dismissed Jose Mourinho’s inference that City have bent FFP regulations with their £25 million purchase of Wilfried Bony, insisting: “The rules are the same for everyone.”
Samir Nasri will miss the clash against his former club with a calf injury that will keep him out for at least three weeks.