Carl Jenkinson's move from Arsenal to Crystal Palace stalled when he discovered Jeffrey Schlupp's wages, Sky sources understand.
A deal for Jenkinson to move to Selhurst Park permanently looked close to completion when Palace agreed a fee with the Gunners, but Sam Allardyce revealed negotiations with the player's agent were holding up the deal.
"While we appear to have an agreement with Arsenal, that agreement with the player hasn't reached a conclusion, so that's hanging in the balance, as we say," said Allardyce earlier in January.
It is understood talks with Jenkinson were held up when the defender found out Palace were paying another January signing, Schlupp, £56,000 a week, with Jenkinson having been offered £35,000 a week to move to the club.
Speaking in his pre-match press conference on Monday, Arsene Wenger said he was still ready to let Jenkinson leave Arsenal before Tuesday's deadline, but admitted a deal did not look likely to happen.
"We respect any professional decision," Wenger said.
"Carl Jenkinson is a great player who has a great attitude. There is no problem on that front. After that, he must find happiness with his conditions and where he goes and feel comfortable."
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