With Barcelona heading the queue of European clubs eyeing the Spain midfielder, the Gunners are said to have agreed a wage-cap busting deal that increased his £80,000 a week salary, reports the Daily Mail.
The £3m lump sum paid last summer would have effectively backdated his wages for the previous two years before his new level of pay kicked in.
The deal would have been negotiated by Fabregas's agent Darren Dein, the son of former Gunners vice-chairman David Dein.
Arsenal will hope the hike is enough to see off Barca and a boardroom source is quoted by goal.com as saying: 'Arsenal have been loyal to Fabregas and believe he will be loyal to them.' He knows that he is young and Barcelona can wait.'