Chelsea captain John Terry will have to wind back his new contract demands.

The Mail on Sunday says Terry has rejected his contract offer from the club, thought to be worth £110,000 a week, and wants his salary to match Michael Ballack's and Andriy Shevchenko's, who earn about £130,000 a week.

But Blues chief Peter Kenyon is determined to bring Chelsea's wage costs down and the club feel that the offers made to all three players are generous.