The French full back wants to be rewarded for his years of loyal service to the Gunners, with a contract worth a reported £120,000 a week, a £6million signing on fee, and a testimonial.
So far the Gunners have continued to offer him a two year contract worth £60,000 a week.
But Sagna has told Arsenal to put their hands in their pockets, as he has big money offers on the table from Monaco and Galatasary.
“The player’s first option is to stay at Arsenal,” said a source close to Sagna.
“He will consider signing a new three-year contract, salary £5m to £6m a season, plus signing-on fee and bonuses.
“It also has to include a testimonial at the end of the deal, when he would have completed 10 years at Arsenal.
“There is one more round of talks left before the season finishes.
“He is very keen to finish his career in an Arsenal shirt but wants to be rewarded for staying loyal to the club when others walked out. And he has had no pay rise since 2008.”
Sagna has made 271 appearances for Arsenal since joining from Auxurre in 2007.