The Gunners are willing to pay Real Madrid's £20 million valuation for the Germany World Cup winner but have been put off by his request for a basic salary of £200,000 per week
Sami Khedira's wage demands are currently pricing him out of a move to Arsenal.
The Gunners are willing to match Real Madrid's £20 million valuation of the World Cup winner, who has just one year remaining on his contract with the Spanish giants.
But Arsenal have baulked at Khedira's salary demands, with the Germany midfielder pushing for a basic £200,000-a-week deal plus top-up bonuses.
This would make him comfortably the highest-paid player at Emirates Stadium and smash the wage structure in place for the club's A-list players.
The top earners are Mesut Ozil and new signing Alexis Sanchez, who both earn a basic £130,000 per week, while Aaron Ramsey's recent new contract lifted him to £110,000 per week.
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