Sagna's current deal at the Emirates Stadium will expire at the end of the season, meaning he can depart the club on a free transfer if fresh terms are not agreed.
|11/10||Arsenal are 11/10 with Paddy Power to beat Newcastle to nil|
"Talks are not progressing," he said ahead of Monday's encounter with Newcastle United. "The ball is not in our court anymore and he has to come back to us [with an answer]."
While Sagna could be heading for the exit door, Wenger was also asked about incomings and the possibility of a deal for striker Loic Remy, who is currently on loan at Newcastle from QPR.
But Wenger refused to be drawn on whether a move was imminent, adding: "He is a good striker. But we are focused on the end of the season, not on strikers."
Midfielder Abou Diaby will not take part on Monday. The Frenchman played 45 minutes of a reserve fixture in midweek after 13 months on the sidelines due to a cruciate ligament injury.
However, his return to the first team has been curtailed by a groin problem.
"[Diaby] had a little groin problem after the game so will not be available on Monday," Wenger said.