Gunners boss has reportedly grown impatient with the inconsistent and injury-prone winger.
Manager Arsene Wenger is apparently ready to cut his losses on the 22-year-old, who was ruled out for up to six weeks following a knee injury in the midweek defeat to Barcelona.
The French boss, who spent £12 million on signing him from Southampton in 2011, is reportedly growing impatient with the England international amid suggestions that he has not lived up to his potential.
Consequently, the Independent states that Wenger will auction off the youngster to the highest bidder in an effort to recoup the sizeable fee spent on him.
With his contract not up until 2018, coupled with his age, the Arsenal boss believes that the club could still profit on the prospective sale.
The North Londoners are well stocked when it comes to right-sided attackers, with Theo Walcott, Danny Welbeck and Joel Campbell all ready-made replacements.
Oxlade-Chamberlain has scored just two goals from 33 appearances in all competitions this season - 17 of which were starting spots - while he only has one assist under his belt.