Sanchez struck a career-best 30 goals last season with further 13 assists in all competitions and helped the Gunners to win their 13th FA Cup.
But Arsenal's 20-year stay in the Champions League ended last season after the Gunners failed to break into the top four, finished only fifth in the Premier League to drop into the Europa League.
Sanchez has been playing in Champions League since his move to Barcelona and has not yet won the prestigious tournament and now with a recent interview, he clearly dropped a major hint as to where his future could be, stating his desire to play and win in Europe.
The Chilean who is on an extended break after competing in the Confederations Cup said while speaking to a Chilean radio station: "I have made my decision, but now the decision has to be taken by Arsenal. It depends on them. I have to wait to know what they want. My idea is to play and win the Champions League. It's a dream I have had since I was little. For now I am at Arsenal and I finish my contract in one more year."
The 28-year-old has been strongly linked with the likes of Paris Saint German, Manchester City and Bayern Munich this summer over a move but the Gunners have been firm that they won't sell. Last week Gunners boss Arsene Wenger even claimed that the Chilean would stay after a "positive" text conversation between the pair.
However, with the Chilean's contract expiring next summer, Sanchez's refusal to sign a new contract and his refusal to play with the North London side, the Gunners could now cash on him this season if a preferable offer comes rather than selling him as a free agent next year.