Arsenal have been dealt a blow in their efforts to keep Alexis Sanchez after it emerged Bayern Munich are ready to trump their £300,000-a-week contract offer.

Bayern are believed to have held talks with Sanchez’s agents, and indicated they are willing to pay the 28-year-old £350,000-a-week as part of a £40 million deal.

That offer will be used as leverage in further negotiations with Arsenal scheduled for the coming weeks, and Sanchez said: "I’m looking at what my agent is doing.

"For now, I’m focused on the [Confederations] Cup in Russia and trying to do well.

"The truth is that my agent will see to it. He knows and he will sit down with the club to look for the best option for me."

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Arsenal have publicly insisted they will not allow Sanchez to leave this summer, but it is understood they will demand £50m should no agreement be reached and the player decides to force a move away from the club.

The Gunners are determined not to let Sanchez join another English club.

It is unclear whether Arsenal will increase their offer in a final attempt to keep him.