Manchester City have not given up on Alexis Sanchez and will try to sign him again when the window re-opens in January, according to Sky sources.
Sanchez's Arsenal contract runs out next summer and he will be able to discuss a move with foreign clubs as soon as 2018 begins.
Sky Sports News has been told Sanchez thought everything regarding his transfer to City would be sorted on Thursday and he would be playing under Pep Guardiola this season.
The 28-year-old was in Chile, where he is preparing to play for his country in their upcoming World Cup Qualifiers, as City tried frantically to get the deal over the line on Thursday.
Sky Sports News understands City even had officials on the ground in Santiago ready to assist in the transfer's completion.
Paris Saint-Germain have also been interested in signing Sanchez this summer but instead landed Kylian Mbappe and Neymar, and are now under investigation by UEFA regarding Financial Fair Play (FFP) rules.