The Liverpool legend has hailed the signing of the Chilean star, though admitted he would have liked to have seen him at this old club.
The Reds were linked with a move for the 25-year-old with some even suggesting that he could have been part of a deal that has taken Luis Suarez from Merseyside to the Nou Camp.
But that wasn't the case and the Gunners officially announced the signing of Sanchez yesterday, and Fowler believes they can be genuine title challengers next season.
He told TalkSport: "He is a great player. He is one of the players who have lit up the World Cup.
“To be honest, I would have liked to have seen him at Liverpool. Fair play to Arsene Wenger and Arsenal for getting him there.
"Arsenal have lacked that striking option up there with [Olivier] Giroud and they are going to be there or thereabouts now."
Without a doubt, the signing is a statement of intent for Arsenal. Supporters of rival clubs seem to associate them with being comfortable with just finishing fourth and not really challenging for the title, but the calibre of signing they have made in Sanchez is likely to improve any side, and it is of little wonder that Liverpool were also interested in him.
Can Sanchez lead an Arsenal title charge?