Alexis Sanchez and Arsenal remain at an impasse over new contract talks, manager Arsene Wenger said on Wednesday.
Wenger’s admission will only heighten speculation the 28-year-old Chile international forward will join Premier League rivals Manchester City.
Sanchez, who played under City manager Pep Guardiola at Barcelona, is presently injured with an abdominal strain which will keep him out of Saturday’s game against Stoke City and prevented him from playing in the opening 4-3 win over Leicester City.
“He (Sanchez) is a player who goes into the final year of his contract. We have not progressed on that front,” said Wenger on Wednesday.
“Let’s not be wrong, it’s not an ideal situation on the financial side and it demands some sacrifice.
“But first of all it doesn’t mean the players who are in the final year of their contract will not extend their contract. You have still that possibility and we work on that as well.”
If no contract extension is agreed and Sanchez stays at the Emirates, he could leave for free at the end of the season.
“That is a consequence of what I say, yes, unfortunately,” added Wenger.