Heart of Midlothian owner Vladimir Romanov will only keep manager Paulo Sergio is he is prepared to take a pay cut.
The Portuguese tactician is keen to stay on as Hearts boss after leading the Edinburgh club to last season's Scottish Cup title but SunSport suggests that he will have to settle for less money going forward.
Romanov and Sergio held talks on Monday night with the former Sporting Lisbon manager agreeing on the contract extension but failing to agree on a reduction of his salary prompting fears that a deal may not be finalised.