The Gunners have reportedly grown frustrated with the 27-year-old.
Arsenal have grown tired of Alexis Sanchez's behaviour on and off the pitch and manager Arsene Wenger has earmarked Borussia Dortmund's Henrikh Mkhitaryan as his replacement, according to The Telegraph.
The Chilean has become a real fan's favourite down at the Emirates since sealing a £35 million move to the North London club from Barcelona in 2014, netting over 40 goals in all competitions throughout his first two seasons.
That being said, The Telegraph report that Arsenal have become frustrated at his 'selfish' behaviour on the pitch, as well as a tendency to turn up late for training.
The report goes on to state that Wenger will offload Sanchez - who has already been linked with a move to Pep Guardiola's Manchester Cty - and replace him with Dortmund star Henrikh Mkhitaryan, who has netted 19 goals and set up 24 in all competitions for the German giants this past season.
Many Arsenal fans would be disappointed to see Sanchez leave. He looked under-par by his own high standards at times in the 2015-16 campaign, though he is still arguably their most electric player since Thierry Henry.
The Chilean has another two years to run on his existing deal, meaning Arsenal may recoup a large chunk of what they paid for him - if not make a profit - but it may be scant consolation for the supporters.