Arsene Wenger says Arsenal remain in talks with Mesut Ozil over a deal to keep him at the club beyond the end of the season.
The Telegraph report that the Gunners are confident that an agreement can be met with the German.
Both Ozil and Sanchez are out of contract at the end of the season, with the Chilean expected to join either Manchester City or Manchester United.
Speaking at his pre-match press conference, Wenger confirmed that Sanchez looks set to leave but offered hope for both Wilshere and Ozil.
It looks like Sánchez will not extend his contract. But we want to keep Jack and if we have an opportunity maybe to keep Özil, the rebuild will be less deep than if all three left.
Arsenal have not had many potential suitors come forward for the German, with reports suggesting he could be tempted in a deal to stay at the Emirates.
Manchester United have been linked with a move for Ozil but the midfielder’s wage demands could be a stumbling block in the deal.