Former Arsenal striker Alan Smith has said that it is a "no-brainer" for the club to let Alexis Sanchez leave this summer.

The Chilean's contract saga continues to rumble on at the Emirates Stadium, with just one year remaining on his current deal and no sign of an extension on the horizon.

Sanchez has publicly stated his desire to be playing Champions League football next season - something Arsenal cannot offer him - but the Gunners remain adamant that they will not sell him this summer, even if it means losing him for free next year.

"Arsene Wenger says he is determined not to sell him, but he seems determined to leave," Smith told talkSPORT.

"If you've got an unhappy player...that's not a great situation to have in the dressing room. For me, it's a no-brainer. You've got to let him go, get the money and move on.

"What the owners would think about keeping a player you could get £60million for and then letting him go for nothing in 12 months' time, I don't know. It happens time and time again at Arsenal."

Manchester City and Paris Saint-Germain have been most strongly linked with a move for the 28-year-old.