Arsenal's players have rejected a club request that they take a 12 and a half percent pay cut, but are open to deferring their wages.
The Telegraph report that the players were asked to agree to the reduction for a year, with an incentive that the money would be returned to a player if a new individual deal was signed in the future.
The club are also believed to have offered a rebate if Arsenal qualified for the next Champions League season.
Before the Premier League season was brought to a halt because of the coronavirus pandemic, the Gunners were 5 points behind fifth placed Manchester United, with a game in hand.
Manchester City are currently banned from next season's competition, but that is subject to appeal.
Arsenal's wage bill is estimated to be just under €265 million per annum. The club would have saved around €30 million had their players agreed to the proposal.
To date, only Southampton and West Ham's players have agreed wage deferrals. Southampton's players have agreed a 10 per cent deferral for three months, with West Ham's playing staff understood to have taken a 30 percent deferral for five months.
The Professional Footballers' Association has advised players not to take cuts.
Arsenal have spent three seasons out of the Champions League, negatively impacting their finances.
