Dallaglio looks set to finish his career with Wasps

The World Cup-winning number eight was one of 13 Wasps players out of contract at the end of the season.

But the England international admitted in the Sunday Times that he had taken a wage cut as part of the deal.

"If I had wanted to earn more money, I would have moved to another club because there were offers open to me at home and abroad," he said.

"For those people who suggested that I was taking a 25 percent cut in salary, let's just say that they were half right," Dallaglio added.

Dallaglio, who made his Wasps debut in 1992, believes staying in England will help prolong his international career in the run up to the Lions tour in 2005.

Wasps would certainly want to keep him, and would probably be able to meet his expectations From John Masters Have your say on Scrum V

"If you have aspirations of playing for England, it is better to play for a club in England week in, week out than to be overseas," he said.

"Also the best place to play if you want to play for England is in the Premiership. I feel it is important to be competing against your rivals on a regular basis."

Wasps director of rugby Warren Gatland hopes to tie down all his top players, including England internationals Joe Worsley and Stuart Abbott, on new contracts by the end of the month.

"Over the next two years they could be a pretty special side and we hope most of these players will stay with us," Gatland said.