Former Liverpool striker Robbie Fowler believes Arsenal must change their stance over contract policies if they want to win the Premier League.
Contracts talks between the two sides are alleged to have stalled recently with both players wanting significant pay rises.
Speaking to the Mirror, via the Express, Fowler said, "Their two biggest stars have less than 18 months left on their deals and both will want to smash the wage structure at the Emirates. With Arsenal's current policies, both players will be leaving by the summer.
"Inevitably, over the past decade, that has meant stars will leave - and it has also created situations that have prevented Wenger's teams from challenging for the title."
Both Ozil and Sanchez have 18 months remaining on their current deals and Arsenal are keen to get them tied down to new long-term deals.
Fowler went on to say, "If contract negotiations drag out with them, they will not win the title again this season either. So, the board must decide what they want to be - a team which wins honours, or one which has an admirable, but, ultimately, limiting wages policy."
Sanchez and Ozil are estimated to be the two highest earners at Arsenal at around £150k-per-week, but both want increases that Arsenal are so far unwilling to budge on which has caused friction between the two parties.
Arsene Wenger has hinted that he is not willing to sell the duo at any cost and is more happy to let them leave for free when their contracts expire.