The Chilean has 14 months to run on his current Gunners contract and he is not close to agreeing a new deal.
Chelsea are interested in signing the 28-year-old but Wenger is confident he will stay in north London.
“Basically, he wants to stay at the club and it’s down to finding an agreement with his agent,” Wenger said.
“The players first have to see if they are happy at the club, then they have to find an agreement.”
Sanchez is willing to remain at Arsenal for another year – as long as they they prove their ambition in this summer’s transfer market.
Striker Sanchez is challenging the Gunners to make the sort of major improvements which could convince him to stay and be successful – or face him running down his contract and then moving across London to Stamford Bridge as a free agent after next season.