Arsenal are seeking advice from their bank about the viability of a rights issue among shareholders that could allow the club to wipe out a significant chunk of their £318 million debt, reports the Daily Telegraph. Alisher Usmanov, who owns 25 per cent of shares, has made the proposal and is keen to contribute financially to an idea that would be aimed at freeing up transfer funds for Arsene Wenger.

Usmanov has become concerned by the possibility of Arsenal falling further behind Manchester United, Liverpool and Chelsea, as well as the probable challenge next season from Manchester City.

Arsenal chief executive Ivan Gazidis says the club is "open minded" and the proposal is due to be examined in greater detail at a board meeting this week.

A key issue for directors would be whether a rights issue would fit with the club's long-term model of self-sustainability.