David Luiz must accept a pay-cut to stay with Arsenal next season.

The Brazilian defender is currently sidelined for a month after undergoing a minor knee operation on Sunday.

But his contract runs out at the end of the season and the club are reluctant to extend his deal on his current terms of £120,000-a-week, says The Sun.

Luiz, an £8million signing from Chelsea two years ago, has been Mikel Arteta's most reliable central defender this season but turns 34 later this month.

No definite decision will be made on his future until the end of the season when the club knows if they will be playing in Europe next season.

But having already handed lucrative long-term deals to Pierre-Emerick Aubameyang and Willian last summer, Arsenal do not want to tie themselves to another veteran on huge wages.