After head coach Carlo Ancelotti last week had his wish granted to sign Colombia's James Rodriguez on loan from Real Madrid, Bayern have called off their bid to poach Chile's hot-shot Sanchez from Arsenal.
"We are no longer involved. We have agreed with our coach that we won't add (new players) in attack. It wouldn't make any sense," Bayern's chairman Rummenigge told German magazine Kicker.
Bayern had reportedly been vying with Manchester City to sign Sanchez, 28, Chile's all-time top scorer, who has a year left on his Arsenal contract, but is stalling over extension negotiations with the Gunners.
Reports in Britain have said he could be offloaded for up to £80 million (US$103m, 90m euros), but Arsenal manager Arsene Wenger suggested last week this won't happen.
Sanchez, who at times last season cut a disgruntled figure as Arsenal struggled with form, is not on the team's pre-season tour to Australia and China as he rests after last month's Confederation's Cup when Chile lost to Germany in the final.
