Both Mesut Ozil and Alexis Sanchez have less than six months remaining on their current Arsenal deals to throw up the possibility of the duo leaving on free transfers at the end of the season.
Neither player has shown a desire to sign a new Arsenal contract following protracted negotiations in the 2016-17 season.
Sanchez has been heavily linked with a move to Premier League leaders Manchester City over the past 12 months and only missed out on a move to The Etihad in the summer due to Thomas Lemar’s reluctance to move to north London.
Manchester United are reportedly interested in signing World Cup winner Mesut Ozil, which isn’t a surprise given the Germany international’s past working relationship with Red Devils boss Jose Mourinho.
Former Arsenal midfielder Nicholas is concerned about the Gunners losing £250m worth of talent that will prove very difficult to replace.
“The modern game is creating such wealth but Arsenal are going in the opposite direction, potentially letting £250m worth of playing talent leave in the summer for nothing,” Nicholas told Sky Sports.
“The same issues have been going on for several seasons and they’re now missing out on Champions League funds because of the apparent penny-counting. The club looks as if it has lost all ambition.
“Since the day David Dein walked away this football club has been sinking and I wonder how we’re going to attract the best players or, when Arsene does leave, his replacement.
“It worries me who would want to come and manage here when it seems we can’t get our best players to renew their contracts.”
Arsenal finished in fifth place in the Premier League table last term to miss out on a Champions League spot but won the FA Cup to compensate for their top-flight disappointment.
The Gunners, who are in sixth spot, lost 4-2 to Nottingham Forest in the FA Cup third round last weekend.
MORE: Man United latest news
MORE: Arsenal latest news
MORE: Chelsea latest news
MORE: Liverpool latest news