Bayern are willing to pay Dalian Yifang's €30 million valuation, according to SportBild.
Arsenal are believed to be very far down the line with regards to agreeing a fee for Carrasco, but it would still fall short of his club's initial valuation.
Bayern's financial outlay already stands at €118 million this summer, having acquired French fullbacks Lucas Hernandez and Benjamin Pavard.
But they are more than willing to spend another €85 million 'or more', as the report states.
Bayern will now wait on Sane's decision and Manchester City's reply.
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9 bold transfer predictions that will DEFINITELY happen this summer
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