The 31-year-old has demanded a three-year contract worth a £100,000-a-week according to the Daily Mirror and if Arsenal are reluctant to pay it, then it looks like the French international could move elsewhere.
Liverpool and Inter Milan are two of the sides reportedly linked with a move for the right-back, first reported in Italy nine days ago, and despite his excessive wage demands, you will be hard pushed to find a better freebie in the summer.
Sagna has been a regular for Arsenal this season, starting 23 out of Arsenal's 27 league matches and six of their seven Champions League games. His loss will create a void Arsene Wenger will need to fill.
Sagna has just turned 31 and a three-year deal would take him past his 34th birthday which would be a bit of a risk for the club to take at the wages he is demanding, especially when they could bring in a replacement on a potentially cheaper wage.
Liverpool would be a good destination for the player, and the player would potentially be a very good acquisition by the club. The Reds have scored the most goals in the Premier League to date, but their defence hasn't been strong enough at times, otherwise they could have been sitting top of the pile right now.
It's an interesting situation to keep your eye on, and whoever signs the Frenchman will be a better team for it.
image: © Ronnie Macdonald