Former Crystal Palace chairman Simon Jordan has advised Arsenal to give Pierre-Emerick Aubameyang a new contract which is "performance-based".
The 31-year-old Gabonese forward's deal at the Emirates Stadium expires in June 2021 and there has been no progress in talks to renew his contract.
He recently admitted that nothing has been brought to the table and he is yet to personally decide on his future.
Arsenal manager Mikel Arteta was, however, positive that the right agreement can be reached even as reports link Auba with a move to Barcelona.
"If the market pays players like this player with his ability £250,000 a week, whether that’s right or wrong is irrelevant, that’s what you’ve got to pay somebody if you want to retain their services," Jordan told TalkSPORT.
“The only challenge for Arsenal is that he would have no economic resale value [if he signed a new deal]. They can’t sell him for anything.
“If he signs another two or three-year contract, they won’t be signing a player to not only achieve things in the short-term but also make some money off when they come to sell him further down the line, they’d be simply be saying ‘we pay money now to get some short-term success, because that’s what Mikel Arteta needs'.
"I would do something footballers don’t like to do, which is make the offer performance-related.
“I would be saying to Aubameyang: ‘You want £250,000 a week? I tell you what, I’ll give you £300,000 a week if you score X amount of goals’.
"Let’s make this about you, let’s make it about your achievement, let’s make it about your individual return’.
“But players often want guarantees, and then the bonuses on top. It’s about finding the middle ground.”
Aubameyang has scored 20 goals this season, 17 of them in the Premier League.
The former Borussia Dortmund man will look to add to the tally when Arsenal travel to the Etihad Stadium on Wednesday night to tackle Manchester City after a three-month suspension of football activities because of the coronavirus pandemic.
Arteta's charges currently occupy ninth position on the table, eight points away from the top four.