David Luiz has allegedly informed Arsenal that he wants to be handed a new two-year contract.
As it stands, the Gunners are able to take advantage of a 12-month option in the Brazilian's existing deal, ensuring that he does not depart the Emirates Stadium on a free transfer next month.
However, according to the Daily Mail, the 33-year-old is only prepared to remain at the Emirates Stadium if he is provided with terms until 2022.
Given the financial implications of the coronavirus pandemic, club officials have little intention of handing the veteran such a deal on his current wages, said to be £120,000 per week.
While a compromise over wages may be an option, it remains unclear whether the two parties will be able to reach a positive resolution.
After his introduction as a substitute, Luiz was responsible for Manchester City's opening two goals in the 3-0 defeat at the Etihad Stadium on Wednesday night.