The Chile international will enter the final six months of his current agreement in January and is unlikely to pen a new deal.

Manchester City are thought to be his most likely destination, with a reunion with his former Barcelona boss Pep Guardiola on offer.

Arsenal and the Sky Blues agreed a £60m fee for Sanchez in August but that potential switch fell through when Thomas Lemar rejected a move to the Emirates.

The latest reports suggest the Gunners may receive just a third of that figure if they choose to cash-in in the new year.

According to the Mirror, Sanchez’s value could plummet to just £20m in January.

Arsenal are expected to make a call on his future then, dependent on how their campaign is going.

Sanchez may push for a deal to be agreed even if Arsene Wenger wants him to stay put though.

The 28-year-old can use the threat of walking away to City for nothing at the end of the campaign.

On Thursday, Wenger admitted Arsenal may have to consider selling Sanchez and Ozil in January.

He said: "Once you are in our kind of situation we have envisaged every kind of solution, yes. Yes, it’s possible."

Arsenal’s failure to qualify for the Champions League means Sanchez is not cup-tied in that competition.

And Guardiola may come calling if City seal safe passage to the knockout stages, which start in February.