Former Liverpool midfielder Danny Murphy has warned Arsenal that they would not be able to replace Alexis Sanchez if they allow him to leave the club this summer.

Sanchez's future at the Emirates Stadium remains shrouded in uncertainty, with the Chilean entering the final year of his contract and no sign of a new deal on the horizon.

The latest reports claim that Sanchez has turned down a £275,000-a-week offer from the Gunners and is holding out for a £400,000-a-week salary - terms Manchester City are rumoured to be willing to meet.

However, Murphy believes that Arsenal should bow to the player's demands as another forward of Sanchez's quality is likely to cost the club a similar amount - if they are even able to lure them to the Emirates Stadium without Champions League football.

"What Sanchez is demanding, that's the going rate because he can get that elsewhere," he told talkSPORT.

"The simple equation is this: £400,000-a-week is £20m a year, over four years that's £80m. To sign a player to take his place, it's going to cost you at least £60m or £70m, and that's if you can find one.

"But Arsenal can't replace Sanchez with someone of his quality, because someone that good won't go there."

Sanchez scored 30 goals in 51 appearances across all competitions last season.