Sanchez will be out of contract at Arsenal at the end of next season.
Sanchez will enter the final year of his £130,000-a-week deal this summer at which point the Gunners could cash in rather than risk losing him for free.
And The Mirror say Arsenal boss Arsene Wenger is privately resigned to Sanchez leaving the Emirates this summer.have offered Sanchez a £50,000-a-week pay-rise to become their highest earner on £180,000 a week, but the Chile international is demanding £250,000 a week to stay.
Sanchez is attracting interest from across Europe, with Paris Saint-Germain, Juventus, Inter Milan, Sevilla and Atletico Madrid all keen.
While the 28-year-old will also have huge offers from the Chinese Super League.
The Daily Star say Sanchez has decided to quit Arsenal for a return to Spain, where he used to play for Barcelona.
Arsenal are already preparing for Sanchez’s departure by lining up a £60million move for Lyon hitman Alexandre Lacazette.
But any replacement will have a hard time filling Sanchez’s boots, who has established himself as Arsenal’s best player.