Real Madrid are keen to invest in the squad after a disappointing first half of the season.
A new forward appears a priority, with Karim Benzema and Gareth Bale proving unreliable this term.
The midfield, which lost James Rodriguez to Bayern Munich in the summer, is also in need of investment.
And reports in Spain claim Zidane and Sanchez have got to work on new deals.
Catalan newspaper Mundo Deportivo claim the pair held a 90-minute meeting on Friday to settle on their transfer targets.
Real are currently in the UAE preparing for today’s FIFA Club World Cup final against Gremio.
Mundo Deportivo claim the two men on Real’s agenda were goalkeeper Kepa Arrizabalaga and midfielder Arthur.
Arrizabalaga is all set to join Real from Athletic Bilbao on January 2.
And Arthur, who will star for Gremio in the final today, is also on their radar despite rival interest from Barcelona.
Gremio are, however, furious that Arthur was pictured wearing a Barca shirt alongside the Nou Camp side’s technical director, Robert Fernandez.
It is claimed Real could make further investments in the January market if results over the next week don’t go well.
The two big games for Real are today’s final, while the first Clasico of the La Liga season is scheduled for December 23.
The report claims Zidane’s full budget will be calculated based on the strength – or weaknesses – of these results.