The Chile international, currently competing at the Confederations Cup in Russia, could be on his way out of the Emirates Stadium this summer after entering the final year of his deal.
Sanchez has yet to agree fresh terms in North London, which is said to have put Manchester City and Bayern on alert as they compete for his signature.
According to The Mirror, however, the 28-year-old has asked Bayern for a whopping £420,000 a week, equating to around £22m over the course of the season.
The Bundesliga champions are willing to offer a weekly salary of £350,000, it is claimed, but Sanchez is expected to hold out for a better offer from elsewhere.
Chile boss Juan Antonio Pizzi insists that the former Barcelona ace is fully focused on his international commitments over the next fortnight as Chile take on Cameroon, Australia and Germany in the group stage of the Confederations Cup.