The Daily Mail says the 25-year-old, who currently earns in the region of £75,000-per-week at Everton, wants a hefty increase on his current weekly wage.
In addition to his wage demands, Arsenal would also be required to meet Fellaini's £22million release clause - which could see the cost of the deal spiral to as much as £50million.
And while Arsenal chiefs are keen on securing Fellaini's services this summer, it is understood there is reluctance to meet those financial demands.
Furthermore, Fellaini wants assurances from Wenger that he will be deployed as a conventional central midfielder at the Emirates Stadium. David Moyes often used him as a second striker at Everton.