The Chilean player was accused of evading €1m in 2012 and 2013 while he was playing for Barcelona by using a company in Malta to avoid being taxed on image rights.

Sanchez has reached an agreement with the prosecutor to pay the money he owes with interest.

He will not spend time in jail as he is a first time offender and under Spanish law, a prison sentence under two years can be served under probation.

Sanchez’s agent, Fernando Felicevich, issued a statement saying: ‘The alleged crimes committed have been used for a long time and by countless players, in agreement with the most prestigious clubs in Spain and using a legitimate and tacit form of taxation and expressly admitted by the Treasury of Spain in the past.

‘Despite having shown that Alexis has not committed any crime, we have been obliged, on the recommendation of our advisers, to accept the unfair pact offered.’

The ex-Arsenal player’s sentence follows a string of high-profile footballers who have been investigated for tax fraud including Jose Mourinho and Cristiano Ronaldo. Sanchez’s former Barcelona teammate Lionel Messi received a 21-month sentence reduced to a £223,000 fine for defrauding the Spanish tax authorities of £2.7m.

Report by Amy Austin