Manchester United have remained tight-lipped on claims they are ready to make Alexis Sanchez one of the world's best-paid players.
The Chilean forward looks set to leave the Gunners this month and United have not hidden their interest, appearing to jump ahead of rivals Manchester City in the race for his signature.
United manager Jose Mourinho said this week that his side "have a chance" to sign Sanchez in the January transfer window, with previous suitors City understood to have dropped their interest in the 29-year-old due to the cost involved.
According to the Telegraph, United have offered Sanchez a four-and-a-half-year contract with an annual income of £27m (€30m) before tax, or just over £500,000 (€564,000) each week. His contract at Arsenal is due to expire in the summer.
With a transfer fee, signing-on lump sum and an agent's fee likely to be involved, it means United could face an overall outlay of over £150m (€204m) should they secure a deal for the former Barcelona player.
United have been approached for comment but have yet to respond.
On Thursday morning, Arsenal boss Arsene Wenger is expected to face more questions about the Sanchez situation when he holds a press conference to preview the Gunners' weekend Premier League match against Crystal Palace.
United's bid to bring Sanchez to Old Trafford depends on Henrikh Mkhitaryan moving in the opposite direction, the Armenian's agent Mino Raiola has said.
Mourinho left 28-year-old midfielder Mkhitaryan out of his squad to face Stoke on Monday due to "doubts about his future".
The United manager is himself close to a new contract, Press Association Sport understands.
Talks are understood to be ongoing and progressing well, with Mourinho's current deal due to expire in 2019.
The 55-year-old took charge at Old Trafford in 2016 and described speculation about his future as "garbage" in a pre-match press conference earlier this month.
After his side's home draw with Burnley on Boxing Day, Mourinho complained that spending of almost £300million since he succeeded Louis van Gaal was "not enough" to compete with local rivals and Premier League leaders City.