Ivan Perisic must accept a pay-cut to stay with Inter Milan.

Perisic's current deal runs to June and has impressed for new coach Simone Inzaghi.

But La Gazzetta dello Sport says the 32-year-old Croatia international has been warned that his current €5m salary is out of their budget.

Inter are suggesting he accept a drop to €3m-a-season if he wants to remain at Inter.

Perisic has scored once in eight games for the Nerazzurri.