A knee ligament injury to Gabriel Jesus, which will keep him out for up to two months, has forced Pep Guardiola to bring forward the transfer of Sanchez.
Boca Juniors are yet to receive any bid for Cristian Pavon amid speculation Arsenal will make a bid for the Argentina international.
Arsenal midfielder Francis Coquelin has been linked with moves to Valencia and West Ham United, but Wenger ruled out the possibility of his compatriot joining David Moyes' side.
Thomas Lemar is Jurgen Klopp's primary target to replace Philippe Coutinho, who joined Barcelona in a £142m deal.
Arsene Wenger is ready to sanction moves for a number of players not in his first-team plans in January and in the summer.
The Glazer family have given Mourinho a transfer war chest of £80m in January, according to reports.
Walcott, 28, has struggled to hold down a place in the Arsenal first team and has seen only 47 minutes of action in the Premier League this season.
The north London club are looking to bolster their defence having conceded eight goals in their last four league games.
Cohen Bramall and Carl Jenkinson have not had a successful first-half of the season after joining Birmingham on a season-long loan in August.
Arsenal manager Arsene Wenger has ruled out the possibility of signing Pierre-Emerick Aubameyang from Borussia Dortmund to replace Alexis Sanchez.
Wilshere, 26, is in the final six months of his £90,000-a-week Gunners contract and has been linked with moves to West Ham, Sampdoria and Real Betis.
Manchester City remain keen to sign Alexis Sanchez and could move in January owing to Gabriel Jesus' recent knee injury.
Arsene Wenger has confirmed Arsenal will sign Konstantinos Mavropanos from PAS Giannina to Arsenal this month before being immediately sent out on loan.
Sanchez is in the final six months of his contract at the Emirates Stadium and is widely expected to leave the Gunners.
Stephy Mavididi is set to leave Preston for Charlton Athletic as Arsenal attempt to give the 19-year-old regular game time.
Marcus McGuane is highly rated at Arsenal with Arsene Wenger giving him a run out with the first-team in the Europa League this season.
Theo Walcott has played just 47 minutes in the Premier League this season with all his eight starts coming in the Europa League and EFL Cup.
Injuries to Gabriel Jesus and Kevin De Bruyne could lead Manchester City to push harder to sign Arsenal's Alexis Sanchez in January.
Wilshere will enter the final six months of his current deal in January and will be free to talk to clubs outside England over a potential free transfer in the summer.
Riyad Mahrez has been identified as a replacement for contract rebele Alexis Sanchez at Arsenal. The Chilean's current deal at the Emirates will run down next summer.
Gunners are interested in signing Draxler as a replacement for Alexis Sanchez, who is in the final year of his contract at the Emirates Stadium.
Arsenal manager Arsene Wenger has revealed when he expects the key trio of Nacho Monreal, Aaron Ramsey and Olivier Giroud to return from injury.