Alexis Sanchez is keen to play Champions League football
Sanchez wants to quit the Emirates and spoke of his desire to play Champions League football while on holiday in Chile this weekend.
He has made it clear he sees his future away from Arsenal and with one year left on his contract can force a move this summer or leave for free next.
Sanchez is wanted by Manchester City with Bayern Munich cooling their interest following the capture of James Rodriguez.
But Wenger is refusing to sell to City following the backlash for selling Robin van Persie to Manchester United.
And the Sun report that Arsenal will offer Sanchez a new deal worth £275,000 a week.
Arsene Wenger hopes to keep Alexis Sanchez at Arsenal for next season
Sanchez currently earns £130,000 but has been asking for the Gunners to pay him parity with the top earners in English football.
And the Chile star is said to love living in London and Wenger is believes that could be a factor in keeping his star man.
But Sanchez's latest Champions League comments make a deal unlikely.
He said: "I want to play in the Champions League. The decision isn't down to me, I need to wait for Arsenal.
"The idea is to play and win the Champions League. I've dreamt about it since I was a kid."
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But Wenger’s offer shows he believes he can be persuaded to stay – or forced to play out the final year of his contract.
Sanchez joined Arsenal from Barcelona for £35m and worked under City boss Pep Guardiola at the Nou Camp.
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Last season he scored 24 Premier League goals but Arsenal still finished fifth and outside the Champions League places for the first time under Wenger.
Arsenal have already broken their transfer record this summer with a £52m move for Alexandre Lacazette and they continue to try and seal a deal for Monaco star Thomas Lemar.
However their biggest piece of business would be getting Sanchez tied down to a new deal.
Mesut Ozil meanwhile looks set to stay after saying that would be his preference while on the club’s pre-season tour in Sydney.
“It is definitely my preference to stay,” Ozil said at the launch of the club's Puma-made third kit.
“It is such a great club and I have always said that I feel very good at Arsenal. Once everyone is back in London we will sit down and discuss about the future.
“For now the most important thing is our pre-season and getting through the tour, training and getting fitness. When I'm back in London, we will sit down and discuss."