Arsenal Transfer News: Alexis Sanchez Contract Boost Amid Real Madrid Rumours

Alexis Sanchez is ready to pledge his future to Arsenal and sign a new deal to keep him with the Gunners until 2020.

John Cross of the Mirror said the contract is worth a potential £40 million to the attacking wizard over five years—in light of interest from Real Madrid. The player has already "agreed the deal in principle," and team-mate Mesut Ozil is expected to follow suit.

Don Balon (h/t James Phillips of Daily Star) had reported Manchester United were preparing a £53 million bid to capture the Chilean superstar, but it now seems the forward will remain in north London. 

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Sanchez joined the club from Barcelona for £35 million in 2014, per Phillips, and he immediately became a fan favourite among the Arsenal faithful.

Cross noted the new deal will see the 26-year-old net £150,000 per week with "major incentives" written into the contract.

However, manager Arsene Wenger said on Friday that negotiations for any new deals for Sanchez and Ozil are yet to take place, as relayed by the London Evening Standard's James Olley:

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Club skipper Mikel Arteta recently lauded both Sanchez and Ozil, and he highlighted why the pair are essential for Wenger's team, per Cross:

"

[Sanchez and Ozil] are probably the most creative players in the team along with Santi Cazorla.

They are the guys who can make the difference for us at any moment. Even if we’re not playing well, you know that they can always provide a spark and win a game for us.

We need players right at the top level playing with consistency and these two give us that. We need to find the right balance in the team to give these players freedom on the pitch to affect the result.

"

The news will disappoint the Galacticos and Red Devils, as both giants of the game hoped to add the player's creativity and goals to their squad. 

Sanchez has featured 47 times in the Premier League since his transfer from Barcelona and has scored 22 goals, according to WhoScored.com. 

Despite his success, former Arsenal striker and pundit Alan Smith proclaimed on Sky Sports News HQ that Wenger should consider resting the talent as he believes Sanchez faces burnout (h/t Sky Sports):

"

I think Arsene Wenger was thinking about resting him anyway, because you've just got to be careful.

He doesn't know when to stop running, he doesn't know when to stop training during the week. He's got to be saved from himself almost because he's so enthusiastic.

Arsene Wenger will be looking carefully at that, looking carefully at how much he's played for Chile - whether he decides to rest him on Saturday.

But he's one of those that carries his team-mates along with him with his infectious enthusiasm, his work ethic and above all his quality.

The team's not going to be quite the same without him, but they've got to be careful they don't overdo him.

"

Sanchez returned to the club after a busy summer playing for Chile and took a few weeks to find his best form before bursting into life. The forward's consistency throughout October was recognised, as highlighted by the Professional Footballers' Association:

If Arsenal have ambitions to win silverware, it is imperative they hold onto players of the class of Sanchez and Ozil. 

The Chilean has the explosive capabilities to beat any defence in England, giving the Gunners the ammunition they need to force a genuine title challenge. 

A sale to Madrid or United appears to have been completely discounted by Wenger, and this could be the best decision the Frenchman makes in the next six months.

The Arsenal coach has amassed a brilliant attacking midfield to supplement the team's forward line, and losing either Sanchez or Ozil would harm any chances his team has of winning the Premier League in the near future.