Manager Arsene Wenger is out of contract at the end of the season and calls for Frenchman to end his 20-year reign at the club grew louder after they suffered their fifth loss in eight league games at Crystal Palace on Monday.
Despite Manchester City, Paris Saint-Germain and Chelsea all waiting in the wings with £50 million offers on the table should Sanchez opt for a move away from the Emirates, Arsenal could be set to make their top scorer this season one of the highest-paid players in the Premier League.
Radio Cooperativa report that Sanchez has already decided that this will be his final season with Arsenal, while City are prepared to pay their Premier League rivals a £50million transfer fee. I think he is a great player and I enjoy playing with him in the national team and I would love to play with him at PSG.
But Wenger seemed to dismiss that figure as unrealistic when asked about it at a news conference on Friday. "Yes, OK", Wenger said with a laugh.
"I can not confirm that we have offered that", he told a news conference. Secondly, we will do as always. we have to consider our financial potential to sustain the wages for the whole squad. Will that continue to go up?
"I think at the moment it would be wrong to think about", he added.
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Contract talks between Arsenal and Sanchez have been going on for a while now, and with Arsenal nowhere near as ambitious as Sanchez thought they would be this season, Arsenal are hoping money can tempt him to stay.
Wenger said that decision was made to ensure it does not become a distraction.
Asked about Ozil's current situation, Wenger said: "It is hard to get distracted".
"You spend a lot of time focusing on things that are superficial". He has the look of a player who much look across town to the Bridge and see a club that is moving forward and winning trophies along the way.
Reports in Chile emerged last week that Sanchez is keen on forcing his way out in the summer after yet another disappointing campaign with Arsenal, but the story from the Standard claims that the player is yet to make up his mind regarding the issue.
"I can not confirm we have offered that", he said at his weekly press conference ahead of the clash with Middlesbrough on Monday evening.