The Chile international completed a move to Manchester United from their bitter rivals Arsenal in a swap deal in the January transfer window.
Sanchez was initially linked with the Premier League leaders before the Red Devils managed to swoop in and sign the 29-year-old forward.
The South American has made an inspiring start to his Manchester United career following a modest return of two goals in eight appearances in all competitions last term.
Manchester United were 3-2 winners against Crystal Palace at Selhurst Park on Monday night to hoist themselves above Liverpool FC and into second place.
However, Jose Mourinho’s side are still 16 points behind runaway Premier League leaders following a disappointing title race this term.
Former Manchester United defender Pallister believes Sanchez will help to get the Red Devils closer to Manchester City next term.
“Manchester City have raised the bar so highly, it’s going to be difficult to close that gap next year. I think we lack a bit of creativity, but hopefully with Sanchez bedding in, that should raise it,” Sanchez told Sportingbet.
“I still think we need a Eden Hazard-esque type player. I think we need to be more free-flowing in our play, and try and match what City are doing.
“After City beat us at Old Trafford, it’s clear there’s a big gap. We’ve got some talented players, but we’ve lacked consistency. We’ve defended solidly in some games, and then others been completely picked apart. United of past were great at getting points when they’ve not player well and at the moment, we’re not doing that. That’s the sign of a team that’s hungry to win the title.”
Manchester United will take on third-placed Liverpool FC in the Premier League at Old Trafford on Saturday afternoon.
The Red Devils will take on Sevilla in the second leg of their Champions League last-16 clash next week.
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