"We will be doing some deals before the window shuts," the Express & Star quotes Saunders as saying.
"I am looking at players better than what we have got, most of them are in the league above and they cost a lot of money.
"So the club has to make that decision. And then it depends on what players leave. We will probably have to shed six or seven players in the long term."
French winger Bakary Sako has been linked with a move away from Molineux after impressing since his summer move from Saint-Etienne, but Saunders denied that the club have received any formal offers for the 24-year-old.
"I'm getting different offers for our players as we speak," he added. "Lots of them, but not Sako. Kevin Doyle? I can't say, but we have had bids for players.
"I have got five right-backs, one left-back and three strikers and I'm not going to leave us short in any area. There are other positions where we may say 'yes' to the deals."
Saunders took charge of Wolves at the start of the month.