The Sunday Mirror says Germany playmaker Ozil and Chile forward Sanchez both have two years left on their current deals with the Gunners.
Talks were opened in May about extensions to keep the pair at the Emirates for the next five years.
Negotiations were then put on hold because the duo were on international duty during the summer.
Sanchez helped Chile retain their Copa America crown, while Ozil was in the German squad that reached the semi-finals of the European Championship, where they lost to France.
The North London club now hope to secure the long-term futures of the pair in the near future.