Arsene Wenger was adamant that Sterling would have to join the club in order for Alexis Sanchez to join Manchester City in the summer window.
City refused to put Sterling in a deal and Sanchez ended up staying with Arsenal, much to his apparent frustration.
The report now claims that Arsenal are still keen on Sterling and will continue to monitor his situation ahead of a potential move for the winger in January.
The report also claims that Manchester City will come in with a £20m offer for Sanchez in January.
Sanchez’s Arsenal contract expires at the end of the season and City feel they can get him on a cut-price deal to avoid Arsenal losing him on a free.
Arsenal are also still interested in AS Monaco winger Thomas Lemar and will battle Manchester United to sign him in January.