The 31-year-old has already rejected two offers to stay, the latest a two-year option on the same £60,000-a-week he earns at the moment.
Make-or-break talks are in the diary but Sagna wants three years at more than £90,000 a week, plus a £6m signing-on fee to be paid in annual instalments.
Sagna is free to discuss a summer move with clubs outside of England, with both Galatasaray and Inter Milan interested in signing him.
Arsene Wenger is keen to retain the Frenchman's services, with Carl Jenkinson the only other recognised right-back in his squad.
Adequately replacing the former Auxerre man, who joined the club in 2007, would be costly and could affect Wenger's ability to strengthen his attacking options this summer.
The Gunners want to sign two new strikers when the transfer window reopens after missing out on Liverpool's Luis Suarez last summer and Schalke's attack-minded midfielder Julian Draxler in January.
Wenger is monitoring young Spanish forwards Francisco Alcacer of Valencia and Real Madrid's Alvaro Morata, while a renewed move for Draxler is also an option.
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