The Chilean has turned down a new contract worth £300,000 a week and will only enter a new deal if the Gunners make him the Premier League's top earner, reports the Daily Star.
Paul Pogba is currently the highest-paid player in the division, earning £290,000 a week a Manchester United.
Sanchez, who has been strongly linked with a move to Manchester City this summer, has one year remaining on his current Arsenal deal.
Meanwhile, the Gunners are said to be struggling to tie Alex-Oxlade Chamberlain down to a new contract, with the Englishman reportedly demanding wages of £200,000 a week.
Sanchez is expected to make his first appearance of the new season during Arsenal's visit to Liverpool on Sunday afternoon.