Arsenal transfer news: Alexis Sanchez at centre of tug of war between Atletico Madrid and PSG

All the latest rumours out of the Emirates on Monday 9th January, 2017

Sanchez is yet to agree a new deal at the Emirates (Getty)

Alexis Sanchez is at the centre of a tug of war for his signature as rumours of his impending Arsenal departure intensify.

The forward is out of contract in 18 months and has yet to put pen to paper on a fresh deal, with reports suggesting he is becoming increasingly frustrated with life at the Emirates.

According to French website maxifoot.fr, Ligue 1 champions Paris Saint-Germain are lining up a £60m summer bid for the Chilean.

They believe they can undercut Arsenal by offering less than what they believe Sanchez is worth if the Gunners allow him to enter the final year of his contract with the threat of him leaving for free.

PSG recently brought in Julian Draxler from Wolfsburg but are desperate to add more goals to their team following the departure of Zlatan Ibrahimovic in the summer.

However, Spanish outlet Don Balon say that Atletico Madrid will look to sign Sanchez as a replacement for Antoine Griezmann, should the Frenchman sign for Manchester United at the end of the season.

They believe Sanchez will prefer a return to La Liga and is enticed by the prospect of linking up with Diego Simeone.

Even if Griezmann does not leave the club then Atletico could fund a move for the 28-year-old by selling Saul Niguez, who is grabbing the attention of a number of top clubs around Europe.