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Arsenal players are set to agree a 12.5 per cent pay cut - after being offered an incredible Champions League bonus plan.

They will get their money reimbursed if they qualify for next season’s Champions League - plus a £100,000 bonus.

And, incredibly, they are being offered £500,000 each if they win the Champions League in 2021 or £100,000 each if they win the Europa League.

It comes as Chelsea have now approached their players about taking a potential pay cuts. The club initially asked the players to take a 30 per cent cut while captain Cesar Azpilicueta has told them the players may be ready to accept a ten per cent reduction.

Chelsea had held off on asking their players but Arsenal’s move may have opened the floodgates when previously Premier League clubs had discussed agreeing on a maximum 30 per cent deferral.

Arsenal's newly drawn up agreement also means if they qualify for the Champions League for the 2021-22 season then they will get all of their money back.

(Image: AFP via Getty Images)

It is understood the players are set to agree the deal after crunch talks with Arsenal boss Mikel Arteta on Wednesday evening, as first revealed by Mirror Sport.

Arteta spelt out the huge financial impact to the club during a video conference call and, with many players already believing they should take a cut, it has probably swung the opinion.

Arsenal are now set to become the first Premier League club to agree to a wage cut which will see them agree to a 12.5 per cent pay cut for a whole year, from April 2020 to March 2021.

But, as revealed by Mirror Sport, they will get 7.5 per cent back if they qualify for the Europa League for next season.

It also has a clause which sets out players will get their money back if they are sold for a profit - as long as “such payment not exceeding the accounting profit from the sale.”

(Image: Getty Images)

It is understood the original offer which did not include the bonuses or the extension of getting into the 2021/22 nearly went through and some players were ready to sign up after being warned the club faces “grave circumstances.”

The Professional Footballers’ Association has urged players not to accept pay cuts and, even though Arsenal players can get their money back, that is effectively what this is.

But Arteta made an impassioned plea while Mirror Sport revealed earlier this week that owner Stan Kroenke has also made another big financial commitment by guaranteeing the club’s potential debt and spending.

Kroenke also effectively underwrote Arsenal’s transfer spending last summer when they broke their record to sign Nicolas Pepe for £72m and his guarantees have allowed them more financial freedom.

The new deal will be a huge relief for Arsenal after it was announced this week their 14 executives on their committee had agreed to reduce their wages by more than a third so casual staff would be paid and other staff not furloughed.

Arsenal’s agreement to cuts follows West Ham and Southampton taking pay deferrals but this is a milestone moment in terms of cuts and may mean other clubs follow suit.

Originally, clubs had agreed to a 30 per cent pay deferral agreement and other clubs have resisted cuts.