Arsenal cannot afford to hand Jack Wilshere a new deal, it has been revealed.

The Sun says the midfielder is being squeezed out of Arsenal because of the escalating cost of missing out on the Champions League.

The Gunners are struggling to keep control of a soaring wage bill which will rise ten per cent this financial year.

And it is Wilshere who is paying the price after being told he must take a 25 per cent pay cut if he wants to stay at the Emirates.

The club's accountants are growing concerned at the shortfall in club finances.

Dropping into the Europa League after 19 years of Champions League football will cost an estimated £29million this season.

And the situation will deteriorate even further if sixth-placed Arsenal miss out again, as seems likely.