The Bundesliga champions are looking for reinforcements after allowing Franck Ribery and Arjen Robben to depart and have made no secret of their desire to tempt Sane back to Germany.
Sane is entering the final two years of his contract at the Etihad and although City have attempted to tie him down a longer deal on numerous occasions, they have been unable to agree terms.
That has alerted Bayern to the situation although their president Uli Hoeness has admitted that it will be difficult to sign Sane as Citys demands, reportedly in excess of £90m, are insane.
With Bayern finding it difficult to meet Citys demands, they are turning to alternative targets including Carrasco who looks certain to leave China this summer.
Carrasco is available for £25m and is prepared to lower his wage demands in order to seal a return to Europe with the Belgium international currently earning around £170,000 per week.
Arsenal have been most strongly linked with a move for the former Monaco and Atletico Madrid winger with Unai Emery working with a reduced transfer budget this summer.
According to the Evening Standard, Arsenal made Dalian Yifang a loan-to-buy offer which was rejected, but are considering making another bid including performance-related add-ons.
Speaking about his plans, Carrasco said last week: From Read More – Source