Leicester were forced to admit earlier this month that they could not afford to pay out an estimated �2m, prompting an angry response from the playing staff.

According to Friday's Daily Mirror newspaper, the players' union was contacted and a deal was struck.

The cash-strapped Foxes have been forced to issue two financial warnings to the Stock Exchange in recent weeks as a result of their growing debts.

Loss of revenue associated with relegation from the Premiership last season has been exacerbated by the cost of building a new stadium.

With Derby, another of last season's relegated clubs, close to being placed in administration and unable to pay their staff, Leicester manager Micky Adams has been quick to praise the club's fans for their loyal support.

Leicester's first three home games this season have drawn an average crowd of 28,000 - 10,000 more than last season's average.

"We can't praise our fans too highly," said Adams.

"The way they have turned up in greater numbers than ever before is a huge testament to their faith in this club, and what we are still trying to do."

Leicester have made a good start to life in the second flight, and are currently in third place in Division One.

A club spokesman said: "All our players remain on Premiership salaries, so there is no doubt these supporters are saving us from considerable difficulty."