The negotiation has reportedly stalled over disagreements on his weekly wage because of Arsenal’s strict wage structure.
Amidst the reports, Sanchez has admitted that living in London is stressful for him.
“I like to go to London to eat something or have a drink with my friends,” the striker said in an interview with Arsenal magazine.
“However, I am a very home-loving person and I spend a lot of time at home.
“I do explore the city if I have the time for it but normally I would rather stay relaxed at home. London can be a stressful place because it's crowded and it's a big city.
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“Our routines as footballers can be energy-consuming too. You play one game after another, meet new people every day and travel a lot. That is why I try to disconnect and relax as soon as I get some time off.”
Arsenal have reportedly offered the 28-year-old around £180,000-a-week wages while the striker using a £400,000-a-week offer from China to try and force Arsenal’s hands.