Alexis Sanchez reportedly refused to fly to Manchester to hold transfer talks after Man City emerged as the new favourites to land his signature.
El Mundo Deportivo claimed that Man City had offered Udinese £35.8 million in cash, with a further £4.5 million in bonuses, for the 22-year-old striker.
Barcelona, meanwhile, had offered £33.9 million - including the transfer of Jeffren - and Man Utd have held firm with an offer of £27 million.
Sanchez reportedly prefers a move to Spain and decided to cancel his flight out from Chile, where he is currently training for the Copa America, after the news about City's improved offer came in.
Udinese are now expected to hold talks with Sanchez in an attempt to break the stalemate.