The La Liga side's star striker Antoine Griezmann is thought to be on the verge of an £85m move to Manchester United but regardless of whether he departs, Atletico are said to be determined to sign a new fast forward this summer.
According to The Independent, Foxes frontman Vardy is among the names on the shortlist following his form in recent months, which has seen him score seven goals in 10 league games to help his side into the top half of the Premier League table.
Sanchez, meanwhile, is yet to agree a new deal at the Emirates as he seeks a significant increase on his current weekly wage of £130,000, sparking speculation that he could be sold on this summer.
Napoli's Edinson Cavani and Alvaro Morata of Real Madrid are also believed to be on Atletico's shopping list as they look to make some marquee signings in time for their move to new stadium the Estadio La Peineta next season.
As it stands, Atletico will be unable to sign any new players this summer due to a FIFA-imposed transfer ban, but they are hopeful of having the sanction overturned on appeal.
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