Portsmouth are likely to renegotiate a clause in David James's contract which stipulates that his £50,000-a-week deal is automatically extended after the goalkeeper has played 10 more games for the club. Portsmouth's difficult financial position means they cannot afford to renew his current terms, reports The Guardian.

Both sides are thought to be intent on reaching an agreement which is mutually beneficial but, as yet, fresh discussions have yet to take place.

James is desperate to play regular football in order to convince Fabio Capello that he should be England's first-choice goalkeeper at this summer's World Cup, while Portsmouth are conscious that Asmir Begovic's £3.5m move to Stoke City means they need James available for as many games as possible.