Bayern Munich, Paris Saint-Germain and Juventus have also been linked with the 28-year-old, but he is believed to be keen to move to the Etihad Stadium.
The French worldwide defender signed a new contract back in November, tying him to the Gunners until the summer of 2020, and has no intentions of leaving the club prior to the end of his deal.
And, though speculation of an exit continues, the defender can't see why he'd leave the Emirates.
'I am happy in my life every day, not just the football but my life with my wife and kids in London.
"They've been there or there abouts for a long time now but never been in with a really good chance in the last few weeks of the season - so adding a couple of players might change that".
Arsenal would be able to go to £300,000 a week in any new contract for the star striker - in what would be the club's biggest ever deal - but he has no intention in agreeing to a new deal. If I can do all of that, then I am happy'.
Despite the protests and the fractured support, Wenger was awarded a new, two-year contract at the club following a third FA Cup in four seasons.
"Sanchez-type players are the ones Arsenal should be bringing in".
Questioned on Wenger, Koscielny says he has learned a lot from his fellow countryman and is ready to fight by his side.
The Chilean has been in a stand-off with Arsene Wenger's side for months and has now entered the final 12 months of his deal.
Wenger on the other hand, is adamant that Sanchez will stay for another year even if it means losing him on a free next season.