Sanchez has been continually linked with a move away from Arsenal this summer.
The Chilean is into the final year of his contract, and while the Gunners have splashed out a club-record £52.7million fee on Alexandre Lacazette, no new deal has been forthcoming.
Reports over the weekend suggested PSG will lodge a £35million bid for the Chilean this week.
Manchester City have also been closely monitoring his situation, although as of yet, haven’t made an official offer.
However, according to French paper Le Parisien, a move to Paris could be on the brink of collapse.
Le Parisien says Sanchez’s wage demands and transfer are proving to be major stumbling blocks.
Sanchez supposedly was spotted in the French capital earlier this week to discuss a transfer.
PSG are inching closer, meanwhile, to a world-record deal worth nearly £200m for Barcelona superstar Neymar.
The Gunners are hoping to get Sanchez to commit his future to the club by penning a new £275,000-a-week deal.
It is said that were PSG to agree to Sanchez’s demands, he could end up earning £500,000 a week.
Sanchez was Arsenal’s top scorer last term, netting 30 goals in all competitions.