The 28-year-old is now into the last 12 months of his existing deal at the Emirates and talks over fresh terms have proved fruitless over the last year.
The Chilean is thought to have been seeking a significant rise on his current wage of £130,000 a week and, with Arsenal unwilling to meet his demands, he has been pushing for a move away this summer amid interest from Manchester City, Paris Saint-Germain and Bayern Munich.
Gunners boss Arsene Wenger has made it clear that Sanchez will not be sold, however, and has instead informed him that he will run down his contract before allowing him to leave on a free next summer.
According to the Daily Mail, the Gunners' most recent offer to Sanchez was £225,000 a week - potentially rising to £275,000 with bonuses - but Sanchez flatly refused and "made it clear he wants upwards of £300,000 before even considering agreeing fresh terms".
The newspaper says that Arsenal have decided to bow to those demands and have put a deal on the table worth £300,000 a week, with the ball now back in Sanchez's court.