Arsenal boss Arsene Wenger has disclosed that contract talks with star midfielder Mesut Ozil are “going well” with Mesut Ozil, but “it’s possible” he and Alexis Sanchez will still leave in January.

The respective contracts of the star duo will expire at the end of the season and Wenger was asked about his players during his pre-match press conference on Thursday ahead of the London Derby clash with Watford on Saturday evening.

On widespread reports that negotiations with Ozil’s agent were progressing “positively”, the 67-year old Frenchman said:

“That is my understanding.

“The fact we didn’t agree last year doesn’t mean he wants to leave.” he added.

Speaking further on Sanchez and Ozil, he said:

“Both players look happy and overall I hope the situation can be turned round, but at the moment we are not close enough to announce anything. Talks are going well.”

When asked about the possibility of selling the two players when the January transfer window reopens. Wenger said:

“Once you are in our kind of situation you have envisaged every solution, yes. It’s possible.”