Super agent Mino Raiola has been spotted in London today.
Calciomercato.com says Raiola is in talks with the Gunners to thrash out personal terms.
Sanchez has already agreed to join Manchester United on a staggering £505,000-a-week deal, with Mkhitaryan moving the other way.
In his press conference today, Gunners boss Arsene Wenger confirmed Sanchez, 29, was being swapped with Mkhi, 28.
He said: "Yes that is my understanding. I like the player.
"The wages will not be a problem."