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Arsenal are set to make its key striker, Alexis Sanchez the highest paid player in the English Premier League.
The move is aimed at making him stay at the Gunners.
Reports said the improved offer will fetch the Chilean 300,000 pounds a week at the Emirates if he agrees to the deal.
Sanchez is in the final year of his contract and this has led to interest from big money spending clubs such as Paris Saint Germain and premier league club, Manchester City.
Arsenal coach, Arsene Wenger had said Sanchez will miss their first two premier league fixtures of the season.
He was reported to have an abdominal pain and is likely to be out of action for a while.
