The Frenchman says that his pledge to keep the Chilean still applies, despite interest from the French giants.
Wenger was asked about the reports following Arsenal's 3-0 defeat to Chelsea in Beijing on Saturday and simply replied "It’s only media imagination."
The 67-year-old also insisted that "it doesn't make any difference" that the interest in Sanchez is from overseas rather than a domestic rival such as Manchester City, who have been hevaily linked with a move for the 28-year-old.
Sanchez has just 12 months left on his contract and it was reported on Saturday that PSG were confident of sealing a deal for the former Udinese man.
However, Wenger's affirmation that 'the decision is not to sell' the player appears to still be applicable and itseems that he may be made to see out the final year of his contract.
The Frenchman is aware of the difficulties that he would have in replacing Sanchez's impact. The forward scored 30 goals and laid on 19 assists for his team last season in 51 games in all compeitions.
In the same sitaution in the past Arsenal have tended to cash in, the example of Robin Van Persie springs immediately to mind, so it will be interesting to see if the 'Gunners' do indeed break from history.