Ozil and Sanchez are entering the final two years of their current deals despite several months of talks.
In April, manager Arsene Wenger expressed his confidence the duo would remain at the Emiratessaying: "You know these two players have two years contract to go at the end of the season.
"We’re not in a hurry. We are talking.
"The players are very keen to stay."
But according to The Times, discussions over the summer have failed to result in an agreement.
Arsenal's predicted starting XI in 2016/17
Mon, August 8, 2016
Express Sport takes a look at how Arsene Wenger's Gunners might line up on the opening day of the 2016/17 season
Express Sport takes a look at how Arsenal might line-up on the opening day of the season, with several injury worries already causing Arsene Wenger a selection headache [Getty Images]
GK - Petr Cech: Solid and dependable, while showing no signs of slowing down at 34 [Getty Images]
RB - Hector Bellerin: The Spanish defender enjoyed an impressive season in 2015/16, and is likely to nail down the right-back slot for years to come [Getty Images]
CB - Calum Chambers: The young defender could find himself starting against Liverpool with injuries to Per Mertesacker and Gabriel, while Laurent Koscielny is only just returning to training [Getty Images]
CB - Rob Holding: New signing Holding may also be thrown in the deep end with Wenger out of options at the back [Arsenal FC via Getty Images]
LB - Nacho Monreal: Like Bellerin on the other flank, Monreal is set to provide some consistency to an unsettled back line [Arsenal FC via Getty Images]
CM - Granit Xhaka: Done enough in pre-season to justify his inclusion, and at £30m Wenger would be foolish to leave him on the bench [REUTERS]
CM - Mohamed Elneny: The Egyptian seems set to be given the nod alongside Xhaka ahead of Jack Wilshere and Francis Coquelin [Arsenal FC via Getty Images]
RW - Theo Walcott: A strong performance against Manchester City has come at just the right time for Walcott while Arsenal's as-yet failed pursuit of Riyad Mahrez leaves the door open for the 27-year-old [Arsenal FC via Getty Images]
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CAM - Aaron Ramsey: Deployed in the No.10 role by Wenger in pre-season, Ramsey could fill the gap left by Mesut Ozil as the German continues to work his way back to full fitness [Getty Images]
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LW - Alex Oxlade-Chamberlain: Impressed in pre-season and could be given a shot ahead of Alex Iwobi with Danny Welbeck a long-term absentee [Getty Images]
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ST - Alexis Sanchez: The Chilean livewire is set to start up front with Olivier Giroud still absent after his Euro 2016 exploits [Getty Images]
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Sub - Kieran Gibbs: With Arsenal struggling for defenders Gibbs could find himself nearer the starting line-up than he was expecting when the Gunners kick off their season [Arsenal FC via Getty Images]
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SUB - Francis Coquelin: The Frenchman will be on hand to close out games and can add steel when required [Getty Images]
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Sub - Jack Wilshere: Wenger has said that the 24-year-old could make his return against Liverpool after picking up another slight knee injury in pre-season [Arsenal FC via Getty Images]
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SUB - Santi Cazorla: Serious injury problems last season, but if he can put them behind him the diminutive Spaniard still has plenty to give [Getty Images]
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SUB - Alex Iwobi: Enjoyed a stellar breakthrough campaign last year and lit up the Emirates when he got on the ball, but may find things more difficult if Arsenal's big guns start firing [REUTERS]
And it is claimed talks will not take place until after the transfer window closes on August 31.
It is said Arsenal have attempted to be 'proactive' in trying to sign up Ozil and Sanchez since last September but have been 'eluded' by the pair.
Ozil has returned to the club this week after an extended break following Euro 2016 while Sanchez could start the new Premier League season up front in the absence of Olivier Giroud and the injured Danny Welbeck.
