There are ways to work this out without revealing your feelings for SIL! Before the next visit, ask your wife if she's noticed how her sister flirts whit you. When she asks "why". Tell her it has made you"uncomfortable" at times. Ask her how she thinks you should handle it. It may be, that they have "shared" BFs in the past, and that they both know what's going on, and you don't. STRANGER THINGS HAVE HAPPENED!
This way, you have 1)Let your wife know that something has you "uncomfortable", 2) aAsked for her help, WITHOUT getting yourself in too deep.
Her answer will determine what further decisions need be made.
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