Arsenal will reportedly offer David Luiz a one-year extension to his contract, which is due to expire on June 30, but will offer the centre back less than his current £120,000 a week deal.
The 33-year-old defender only signed for the Gunners last summer for £8million, on a one-year contract with a 12-month option.
But with talks stagnating in recent weeks, manager Mikel Arteta is keen to get the Brazilian re-signed, meaning the club could offer Luiz a deal based on appearances and incentives, according to The Mirror.
Both parties are said to be keen to reach a compromise, as the former Chelsea man looks to extend his stay at the Emirates.