Arsenal boss Arsene Wenger says contract talks are "going well" with Mesut Ozil, but "it's possible" he and Alexis Sanchez will leave in January.

The contracts of both midfielder Ozil and forward Sanchez are due to expire at the end of the season.

When asked to confirm reports negotiations with Ozil's agent were progressing "positively", Wenger said: "That is my understanding.

"The fact we didn't agree last year doesn't mean he wants to leave."

He added: "Both players look happy and overall I hope the situation can be turned around, but at the moment we are not close enough to announce anything. Talks are going well."

However, the Frenchman said the club had not set a deadline to conclude a deal.

And when asked about the possibility of both Ozil and Sanchez being sold when the transfer window opens, he replied: "Once you are in our kind of situation you have envisaged every solution, yes. It's possible."

Meanwhile, defender Shkodran Mustafi will be sidelined for up to six weeks with a hamstring injury.

The 25-year-old Germany international limped off with a first-half injury as the World Cup holders completed a 100% record in qualifying for Russia 2018 by thrashing Azerbaijan 5-1 on Sunday.

"We've lost Mustafi for about four to six weeks," Wenger said.

"I don't think he will be available before the next international break."