Arsenal came within inches of losing Sanchez to Pep Guardiola’s Manchester City.
A fee had been agreed with the Citizens and a move would have gone through if Arsenal could land a replacement in time.
However, Arsene Wenger’s side failed to convince Thomas Lemar to join despite having a £92million bid accepted by Monaco.
And Spanish outlet Don Balon claims Chile international Alexis Sanchez was offered up to Real Madrid, who emphatically and surprisingly said no to any potential deal.
It is said the player’s agent approached Madrid about bringing Sanchez back to La Liga.
But Madrid boss Zinedine Zidane thought the club did not need him.
Don Balon say the Frenchman is happy with his squad and thought any deal for Sanchez would be a luxury signing.
However, Real are open to signing him as a free agent next summer.
The Chile international’s current deal expires next year and a renewal looks as if it will never be signed.
Wenger, meanwhile, is hoping Sanchez knuckles down and gives his all for the Gunners.
“100 per cent. Your interest is always to perform,” he told BeIn Sports.
“It was not very close. It’s very difficult for me to speak about that because what I want the player to do is now focus on his career, on his season and on Arsenal football club.”