City's move for Sanchez collapsed on transfer deadline day with Arsenal unable to conclude a deal for a replacement -- having made their own late move for Monaco's Thomas Lemar.

The Gunners had enquired about including Sterling in a potential swap deal but Guardiola said he instantly dismissed the possibility of the England international when it was suggested.

"It's simple, when we spoke with Arsenal in the last days, they wanted to make a swap with Raz [Sterling]," Guardiola told a news conference ahead of City's game with Liverpool on Saturday.

"They talked to me and I said no chance. Zero chance. Not one percent chance. He's 22, an English player, a lot to improve.

"We only made an offer with cash, they accepted but [we] couldn't sign their player."

Arsenal had insisted that Sanchez was not for sale all summer but finally accepted an offer of £55 million plus add-ons on deadline day before it subsequently fell through.

The 29-year-old remains at the Emirates Stadium but with his contract running out at the end of the season, he will be available for free at the end of the season.

However, sources have told ESPN FC that City could consider a substantially lower cash offer in January and Guardiola did not rule out a fresh move for Sanchez.

"I don't know what's going to happen in the winter," he said. "We were interested in Alexis and in the end Arsenal decided not to sell him.

"I know him from Barcelona. Sometimes the deals work and sometimes not. We will see in the future."

City were also interested in a late move for West Brom defender Jonny Evans but didn't make a move because Elaquim Mangala decided to remain at the club.

A lot appeared to depend on the fitness of captain Vincent Kompany, after he has suffered in recent seasons with persistent muscle injuries, and he will miss the game against Liverpool after picking up a fresh calf strain on international duty with Belgium.

"I am sad," Guardiola said when asked about his latest setback. "The last seven eight, nine games last season he played no problem.

"Preseason, we took care of him and he played all three games. Now, unfortunately, we've lost him, but we will try and get him fit as soon as possible."