Sanchez, 28, has been heavily linked with a move away from the Gunners throughout this season.
The Chile international has been stalling on signing a new deal at the Emirates and doubt has been cast over his future with his contract set to expire at the end of next season.
Bayern Munich are apparently interested in securing Sanchez's signature with reports suggesting his agent has held talks with the Bundesliga champions over a move.
It is claimed they are willing to pay £50million for him and his international team-mate Arturo Vidal has even confirmed Bayern's interest in the former Barcelona forward.
However, Bild claim Bayern are ready pull out of the race to sign him due to issues over his wage demands.
Alexis Sanchez strips off in Arsenal training as key man returns ahead of FA Cup final Wed, May 24, 2017
Alexis Sanchez loses some layers as a key man returns to Arsenal training ahead of their FA Cup final clash with Chelsea
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Alexis Sanchez bares almost everything during Arsenal's latest training session
The German outlet claim Bayern Munich are willing to offer him a maximum of £13.9million-a-season, which amounts to around £268,000-a-week.
But he apparently wants closer to £17.3m-a-season, which is closer to £300,000-a-week.
Express Sport understands he will be willing to remain in north London if Arsenal meet his demands.
And it appears as if he could be set to stay at the club with Bayern willing to look elsewhere.
Arsene Wenger outlined his intentions to keep hold of Sanchez beyond this summer.
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Bayern Munich are ready to end their interest in Arsenal star Alexis Sanchez
Alexis' contract ends in 2018 so it is a different situation.
Arsenal manager Arsene Wenger
"We have nobody at the end of their contract so that will be completely our decision," said Wenger.
"Therefore, I just believe that the club has of course got a big job to do in the summer because you want keep players like Alexis and all the speculations can happen."
The Frenchman added: "If you have surgery tomorrow and it is the surgeon's last day of work – you still want him to do good work and not half a job because it is his last day.
"That is being professional. I have ended contracts before and always ended exactly the same.
"Alexis' contract ends in 2018 so it is a different situation."