Talks over a new deal between the Chile international and Arsenal have been shelved until the end of the season.
And the 28-year-old has cut an increasingly frustrated figure at the club in recent weeks – a period that has seen the Gunners lose seven games in 12.
Arsenal have offered Alexis Sanchez a huge £300,000-a-week deal
But the London Evening Standard claim Arsenal have now made a sensational £300,000-a-week offer to their star man.
The report claims the Gunners have made the offer as they are fearful of losing their best player to a major rival.
The new contract would make Sanchez the Premier League's top earner.
He is yet to respond to the improved terms, but he has previously admitted he is happy in London.
Where could Alexis Sanchez go next? Thu, March 30, 2017
Where could wantaway Arsenal striker Alexis Sanchez go next?
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Where could Alexis Sanchez go next if he leaves Arsenal?
Alexis Sanchez has been Arsenal's star player this season
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Manchester City, Chelsea and Paris Saint-Germain have all been linked with a move for the forward.
And they are all expected to make bids for the Chilean at the end of the season.
Chelsea, in particular, have been mooted with a push for Sanchez as manager Antonio Conte works on his squad for next season.
Conte is aware that Diego Costa could force a move away from the club this summer, while they face competition to sign top target Romelu Lukaku from Everton.