West Ham United have offered midfielder Freddie Ljungberg a £3 million pay-out to leave Upton Park.

The Times says Ljungberg has three years remaining on the four-year contract he signed when he joined the club from Arsenal last summer. The compensation package is less than his salary of about £3.9million a year - £75,000 a week.

West Ham could make similar compensation offers to Lucas Neill and Luís Boa Morte, the forward, who are among the higher-earning players. The club have been looking for a new right back to replace Neill, the Australia player who earns about £65,000 a week and has a year left on his contract.