Crystal Palace are willing to takeover Rui Fonte's wages to extend the Arsenal striker's loan to the end of this season.
The Croydon Advertiser says it was thought Arsenal's insistence that Palace take on the 100 per cent burden of the Portugal forward's wages, understood to be in the region of £1,000 per week, could prove a stumbling block.
However, after talks with the Emirates club this week, Fonte looks set to stay at the SE25 for the remainder of the season as Eagles boss Neil Warnock looks to ensure Palace's season does not fizzle out.
A decision on Fonte will be made before the weekend.