Michael Schumacher will be forced to take a £5million-a-year cut in pay if he wants to see out his high-speed career behind the wheel of a Ferrari.

The German superstar currently rakes in a massive £25m each season - but the deal which has made him the highest-earning driver in Formula One history runs out at the end of next season.

And while Ferrari bosses are anxious to keep the man who helped turn them into the most feared team on the grid, they are having to trim their budgets.

The Italian giants, who spent £250m launching Schumacher to his record-equalling fifth world crown last season, have agreed with the other outfits to try to keep their costs down.

Their decision came after FIA president Max Mosley pointed out that the sport was becoming too costly for some teams to compete.

Some of the cash comes from Ferrari's road car division and sponsors but their main backers have always been Fiat, who are struggling in the financial climate.

The new deal has already been put to Schumacher's manager Willi Weber, who is now waiting until after Sunday's Malaysian Grand Prix to discuss the matter with him.

Weber confirmed: "There has been an offer made and Michael has said he will let me know when he is ready to talk about it."

Schumacher, 34, has always maintained he is driven by glory not gold - and Ferrari are the team he would like to stay with until he feels it is time to call it quits.

But with Schumacher's price tag dropping, it could open up an intriguing three-way tug-of-war for his services, with the sport's two other track giants - McLaren and BMW Williams - trying to get the world's top driver on board.

Both have shown an interest in the German but have never been willing to match - or even top - the sky-high wages Ferrari fork out.

Williams technical director Patrick Head said: "You'd have to say, and let's be honest about it, if every team was asked what driver they most wanted they would say Michael Schumacher.

"They probably wouldn't want to pay his salary - or couldn't afford to pay it - or keep up with the car's developments he would expect. But the fact remains that everyone would want him.

"I am extremely happy with our two drivers Juan Pablo Montoya and Ralf Schumacher and I wouldn't want to change them - unless someone came along and said: 'Here's Michael'."

Frank Williams has made no secret about his admiration of Schumacher - not just for his skills behind the wheel but his total dedication to the sport.

Even before this season kicked-off, Williams told both his men they should try to emulate the Ferrari star's single-minded approach if they wanted to become world beaters themselves.

If Schumacher ever hinted he fancied driving for another team, Williams' German engine backers BMW would help foot the bill in order to have not just a fellow countryman in the cockpit but the very best.

McLaren chief Ron Dennis also had serious talks with Schumacher before he finally left Benetton for Ferrari in 1996.

Editor: This report was from the Sun this morning but if you are a follower of Michael and Ferrari you will know that the likes of Williams and Mclaren will struggle to find the cash to pay Michael Schumacher. Not only that, Michael really is coming towards the end of his racing career and there wouldn't be much point in sigining for a new team for one or two seasons.

Plus of course the most obvious point is that Michael has been quoted as always saying he wants to see out his racing career at Ferrari.