William Gallas could have played his last game for Arsenal after the club branded his wage demands 'extravagant'.
The former Gunners skipper's current contract expires in the summer and the Emirates Stadium outfit are in talks over a 12-month extension.
Manager Arsene Wenger had hinted that he could be prepared to alter the club's policy of only offering one-year deals to players in the latter stages of their career.
But Arsenal chairman Peter Hill-Wood has now revealed that they would only be prepared to extend the 32-year-old France international's by an additional season.
And he says the club will not be held to ransom by the former Chelsea man, who could now be on his way in the summer.
Hill-Wood told the Daily Star: "His demands are quite extravagant and I don't think we are prepared to go along with it.
"We would very much like him to stay, but I think for one year, and not on the money he wants.
"He is a good player, but you have got to draw the line somewhere.
"If he can get the money somewhere else, good luck to him. We still hope he will sign, but if he doesn't, he doesn't.
"It is not that we are being bloody-minded for the hell of it.
"We have got to look forward and the cost of players isn't just in transfers, it is in the salaries as well. And we analyse these quite carefully, because we don't want to go bankrupt."