Arsenal are afraid star striker, Alexis Sanchez, may force a move to rivals, Manchester City, after hoping he may stay or likely move abroad.
According to emerging reports, the Gunners had hoped to persuade Alexis to extend his current contract, which expires next summer, or at least to sell him abroad as a last resort.
But sources in the know have said that the Gunners are now deeply concerned they will lose the Chile international to City following talks with his representatives.
Alexis' future had been on hold while he participated in the Confederations Cup, though Arsenal had prepared a huge pay rise in an attempt to keep him at the Emirates Stadium.
French side Paris Saint-Germain and German champions Bayern Munich had explored the possibility of signing the 28-year-old in recent months but he wants to be reunited with Pep Guardiola, who coached him for one season at Barcelona.
However, a rumoured Inter Milan move is now described as destined for failure, with the Chilean not interested in such a move.