Both clubs chased the highly-rated Chilean this summer, but the Gunners eventually came out on top in the tussle.
Sanchez himself in understood to have made the decision based on a desire to live in London, even though the Reds could guarantee him playing time and a big role following the exit of Luis Suarez – who headed in the opposite direction to Barcelona.
Scales – who spent two season at Anfield – believes that the 25-year-old attacker would have fitted well in a Brendan Rodgers side and that his old club will look back at the saga in the future with feelings of regret:
“I think he wanted to live in London. That’s every player’s prerogative and he made a decision for what was best for his career,” he told The Express.
“He would have been a good addition. He’s a talented player. I wouldn’t have had any issue with him joining but he needs to be comfortable where he is and be able to produce his best form.
“He looks a really good player and Liverpool would probably wish they had taken negotiations further.”
Sanchez starred for his nation at the World Cup and cost Arsenal close to £35m.