
Spanish giants Barcelona and Real Madrid have been put on alert after Fabregas turned down the chance to renegotiate his existing deal.
The Gunners want to offer Fabregas (left) a £35,000- a-week pay hike plus a two-year extension to his deal, which runs until 2014.
They want to make him the club's highest-paid player and tie their prized asset to an improved deal in keeping with his status as one of the finest young players in the world.
But Fabregas, 21, has put off talks as he wants to see what Barcelona and Real Madrid offer next summer.
His present deal, which was signed two years ago and has annual increases built in, still leaves him a long way short of the club's top earners William Gallas, Emmanuel Adebayor and boss Arsene Wenger, who all pocket £80,000-a-week.
Fabregas wants to command a regular starting place in the national team.
He expects to earn around £100,000-a-week at Arsenal if he stays - but believes Real Madrid will bid around £40million for him if they can't get Cristiano Ronaldo.
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