Sanchez is out of contract at Arsenal in the summertime and is closely related with an go out this month.
Manchester City are the frontrunners to signal the Chile ahead however Manchester United have introduced an try to beat their opponents to his signature.
United made a bid of £25million to Arsenal the previous day and also are ready to let Henrikh Mkhitaryan cross in the other way.
Sherwood reckons Arsenal must attempt to stay Sanchez for the rest of the season as he’s their highest likelihood of completing within the Champions League qualification puts.
But the ex-Spurs supervisor says for an attacking participant, taking part in under Pep Guardiola at City can be a better choice for him than with Jose Mourinho at United if he did depart this month.
“They can offer what they want but I think ultimately it’s going to come down to where Alexis Sanchez wants to play,” Sherwood stated on Sky Sports.
“Or Arsenal come to a decision no longer to promote him and it’s price greater than £20m to them to end in a Champions League spot.
“I believe they’re higher supplied with him than they’re with out him.
“After that, it’s about the place he needs to play.
“I’d counsel that an attacking participant like him would somewhat play for Pep Guardiola than Jose Mourinho.”
“Obviously the key is the individual. Arsene knows Alexis Sanchez better than all of us, he would speak to him and make a judgement call on whether he’s going to give his best for the club.”