The 24-year-old attacker's contract is set to expire in the summer of 2018 with the player showing no indication of putting pen to paper in signing a new deal at the Emirates Stadium.
According to the Daily Mail, the Gunners have made a final contract offer of £180,000-per-week ($230,000-per-week), representing a 176% pay-rise from his current £65,000-per-week ($83,000-per-week) deal.
However, the same report claims that the bumper contract offer is set to be rejected by Oxlade-Chamberlain, which could trigger a late sale in the transfer window with Arsenal not being prepared to lose him on a free next summer.
It comes as a huge blow to manager Arsene Wenger, who on Thursday (24 August), reiterated his desire to keep Oxlade-Chamberlain.
"I want Alex to stay," Wenger said. "He's one of the players the team can be built around, I want him to commit and be one of the carriers of the values of this team."
"I want to keep my best players - my only target is to keep everyone on board. We've invested time and money and confidence on players like Ox and they have a responsibility. I hope he commits."
Premier League champions Chelsea are said to be the front-runners for Oxlade-Chamberlain's signature with Liverpool also maintaining a long-term interest in the former Southampton man.
It was revealed in July that one of the main reasons why Oxlade-Chamberlain was involved in a contract stand-off with the north London club was not money, but his desire to realise his potential.
The versatile midfielder believes that is not possible under Wenger due to his constant injury problems, as well as consistently being in and out of the side with his stance further underlined by another contract rejection.
Interestingly enough, Arsenal travel to Anfield this weekend to take on Liverpool where it will be worth paying attention to see whether the French manager selects Oxlade-Chamberlain.