The 27-year-old who currently earns £130,000 a week has an offer of £400,000-per-week from a Chinese club.
According to , Sanchez is using the offer from China to try and get Arsenal to smash their wage structure.
Arsenal are reportedly willing to pay the striker £260,000 a week after tax.
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The club is, however, hopeful that they will soon agree on a deal with the striker.
Sanchez joined Arsenal in the summer of 2015 and has become an integral part of the squad.
Playing in the central striking position this season, the Chilean has scored 11 Premier League goals including the magnificent hat-trick in Arsenal’s 5-1 win at West Ham on Saturday, December 3.