Brazilian claimed this week 19-year-old striker had agreed a new deal.
Julian Draxler has scored five goals and assisted five in his last season at Wolfsburg.
Barcelona and Manchester United are the second and third most valuable clubs, respectively.
Tomas Kalas spent last season on loan at Middlesbrough and helped the club gain promotion to the Premier League.
'Scout' Tony Banfield says he would sign a blank cheque to have Napoli midfielder Jorginho
Ozan Tufan is also a rumoured target for Manchester United and Everton.
Mauro Icardi has scored 38 goals in 69 Serie A appearances in the last two seasons for Inter Milan.
Sanchez scored 17 goals and assisted 10 last season for the Gunners.
The Poland goalkeeper excelled on loan in Rome last season.
Adriano may be first out the door following the signing of Lucas Digne.
Chelsea travel to Austria for their pre-season camp on Friday.
The 49-year-old was Gunners captain for 14 years during his playing career.
Former Barcelona youngster also had an offer from Bristol City.
The Spurs midfielder dropped down the pecking order at White Hart Lane last season.
Jordon Ibe had made 27 appearances for Liverpool last season.
The 23-year-old star has been heavily linked with a return to Old Trafford.
France international becomes club's third summer signing following Samuel Umtiti and Denis Suarez.
The France international's agent says no contact has been made by the Serie A club.
Gunners reportedly exploring swap deal involving Olivier Giroud to bring Argentina striker to Emirates.
West Ham are also reportedly interested in luring him back to the Premier League.
Black Cats boss has emerged as a front runner for the vacant role.
Fletcher signs four-year deal with Olympic Stadium club after Man U contract expired.
The Former Barcelona star will have his first experience in the top flight.
The 22-year-old has signed a 3-year contract with the Latics after passing a medical.
Balotelli is currently training with the Liverpool squad at Melwood.
Manchester United can try to sign Fabregas if he becomes surplus to requirements at Chelsea.
27-year-old joined the Blues in 2013 from Russian side Anzhi Makhachkala.
Dutch midfielder helped PSV Eindhoven win league title last season.
18-year-old Reid joined from Arsenal in 2012.
Reports had suggested Arsene Wenger was ready to meet striker's release clause.