Alexis Sanchez holding out for record wages at Bayern Munich

Arsenal forward Alexis Sanchez could drag his transfer saga for a while after he snubbed a £350,000 a week package from German champions Bayern Munich.

The Chile international, who is currently on Confederations Cup duty, has been reluctant to extend his Gunners contract beyond 2018, and this has widened speculation over his future.

Both Bayern Munich and Manchester City are in the hunt for the 30-goal striker this summer, but the Bavarian giants could pull out of the deal altogether due to the Chilean's hefty wage demands, The Mirror reports.

Sanchez wants at least £420,000 in weekly wages, and this equates to around £22m a year, well more than what Robert Lewandowski receives - £16m.

Arsenal manager Arsene Wenger has previously insisted that he could risk keeping the attacker for the final year of his contract, and this could well be the case, should Manchester City be the sole club interest in his services.

Sanchez bagged his career-best tally of 30 goals and 15 assists last term as Arsenal lifted their third FA Cup title in four seasons.