Former Arsenal midfielder Ray Parlour has claimed that Alexis Sanchez would be a bigger loss for the club than Mesut Ozil.

Both players are heading into the final 18 months of their respective contracts at the club, but talks over an extension have so far been unsuccessful.

Ozil and Sanchez are understood to be demanding significant pay rises in any new deal, and Parlour believes that Arsenal should "break the bank" to keep them at the Emirates Stadium.

"It's difficult, Ozil's been brilliant for the club as well, but Sanchez for me, slightly, would get the nod just for his work rate, the way he scores goals, is involved in the good play. Ideally you want to keep both it's as simple as that. You've got try and break the bank for both if you're going to go forward," he told Squawka.

"You don't want to be losing your best players, I think Arsenal now are in a position to do that but obviously they need to get signed up quickly. They're in a great position the players, they've got all the power now. Their representatives are trying to get the best deal they can so it will be interesting to see what happens over the next few weeks.

"I'm sure they're trying to get a deal done now, straight after Christmas and get the tied up on long-term contracts. Hopefully going forward that will give Arsenal a better chance of maybe competing in the Premier League and obviously the Champions League."

Sanchez has scored 14 goals and created nine more across all competitions this season, while Ozil has weighed in with nine goals of his own.