The goalkeeper, who enjoyed a decent season in which he managed to oust Fraser Forster as Saints' number one, wants a new contract worth £60,000-a-week according to the Mirror, with his current deal expiring at the end of the 2018/19 season.
His contract demands come amidst increased interest in the young goalkeeper from both Liverpool and Tottenham. It's believed that McCarthy is already on a contract worth £40,000-a-week, and if Southampton can't match his new contract expectations, Spurs and Liverpool could be well placed to swoop for him.
Both clubs are on the look out for some reinforcement in the goalkeeping area, with Liverpool's need for a new number one obvious after Loris Karius' horrendous blunders in the Champions League final.
While it appears that Hugo Lloris will retain the number one jersey at Spurs, his performances during the 2017/18 season were very hit or miss.
Although Southampton ultimately managed to stave off relegation in their 2017/18 campaign, they endured a highly disappointing and turbulent season, and keeping players such as Alex McCarthy will be key for next season as the club attempts to match their lofty ambitions.