"When we started to speak with Arsenal in the last days before it was not impossible, they wanted to make a swap with Raz", Guardiola told reporters at the City Football Academy in Manchester.
The two clubs spent transfer deadline day locked in talks over City's desire to sign Sanchez, only for the deal to collapse because Arsenal were unable to sign their preferred replacement, Monaco winger Thomas Lemar.
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"The only deal possible was cash".
Sanchez's contract runs out at the end of the season and Guardiola was asked about a potential transfer in January.
The City boss is adamant that Sterling still has a big part to play for the club moving forward but Sterling was reportedly excited at the prospect of moving to Arsenal to secure more time on the pitch. "I am when the transfer window is open, but when the window closes, it's over for me and I'm it thinking about January or the end of the season".
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"I don't know what's going to happen in the meantime".
Whatever the case may be, the most important thing for Arsene Wenger and the Arsenal fans is to see the Chile global perform to the best of his ability while he is still a Gunner and the former Man United and England defender Rio Ferdinand has advised Alexis that he must do that if he is going to get any joy from his remaining time in north London, reports Metro. He was left out of the starting XI for the Gunners' Premier League fixture at home against Bournemouth on Saturday. As far as I know, UEFA didn't call us to say that we are being investigated.
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Mariano Diaz also swapped Real for Lyon and Karim Benzema's hamstring injury has now left the Champions League holders with few options.