LONDON -- Arsene Wenger says Arsenal could end up being "second best" to Manchester City in a bidding war for Jonny Evans and did not rule out a January exit for Alexis Sanchez.
Wenger has repeatedly been linked with a move for West Brom defender Evans, but said: "as long as we don't have any agreement with anybody, I believe the best is not to talk."
Sources have told ESPN FC that City are also interested in Evans, and Wenger admitted that Arsenal could struggle match the Premier League leaders' financial might if both clubs decide to bid.
"Look, [the biggest challenge is] to see off any interest of any other club," he said. "I don't know if Man City is in for anybody. I don't know what their policy is.
"Financially, if the decision comes to finances with Manchester City, we know we will be second best. That is well known."
Sources have also told ESPN FC that City could conclude a deal for Sanchez by the end of the week but, while Wenger indicated that there had not yet been a bid, he suggested Arsenal could cash in on the Chile forward this month.
When asked if there had been any contact from another club about Sanchez, Wenger said: "No, I expect nothing. I'm focused on tomorrow's game. When solicitations happen, you respond to it. At the moment, it's very quiet."
And when probed about whether Arsenal would be willing to sell the Chile international, he said: "I have nothing to add to what I said before on that."
Wenger also confirmed that midfielder Francis Coquelin could be sold this month.
Coquelin has only started one Premier League game this season with Granit Xhaka preferred in the holding midfield role, and Wenger made it clear that his fellow Frenchman could be on his way out of the club.
"It's a possibility but nothing is decided," Wenger told a news conference on Tuesday. However, he added that West Ham was not a possible destination for Coquelin, despite reports claiming that David Moyes was interested in making a bid.
The Arsenal boss also said there was no news to report when it comes to contract negotiations with Mesut Ozil and Jack Wilshere, who like Sanchez have deals that expire this summer.
"We are working on it and as soon as we have any definite solution, we will get back to you," he said.
Arsenal have a trio of defenders injured at the moment, with Laurent Koscielny, Nacho Monreal and Sead Kolasinac all set to miss Wednesday's Carabao Cup semifinal at Chelsea.
Wenger acknowledged that his defence has struggled this season, with the Gunners sitting in sixth place in the Premier League and having suffered a third-round FA Cup exit against Nottingham Forest.
"It's quite simple. Our offensive game has been outstanding but defensively we have not had the stability that we need to have to win the games," Wenger said.