The Reds and the Gunners were the two frontrunners for the Chile international, who was forced out of Barcelona following the arrival of Luis Suarez.
With the Uruguayan heading to the Nou Camp from Anfield, Liverpool were seen to be favourites to land him in a player plus cash deal.
However, Sanchez opted for Arsenal due, in part, to their London location, and has been a massive hit at the Emirates Stadium – he’s currently their top scorer this term with 19 goals.
And Wenger – whose side travel to Liverpool this Saturday – says that he thought his attacking star would be playing his trade on Merseyside now:
“I was aware of Liverpool’s interest but you never know [at the time] if it’s really true,” he is quoted by the London Evening Standard. “But I thought it could be true because of Suarez.
“In the negotiations [for Sanchez], yes, it was a strength [Liverpool were already speaking with Barcelona about Suarez]. It made sense, an exchange and some money for Liverpool.
“At the end of the day only Sanchez can explain to you why he has chosen us. I don’t know why he did that but we were happy to let him make that decision.”