Leicester City's players are facing dramatic pay cuts of 40 per cent if they are relegated this season.

The Premier League champions acted to mitigate the costs of relegation after winning the title last season by inserting wage-reduction clauses into the contracts of those players awarded lucrative deals last summer, as well as those of the new arrivals to the club during the close season.

Many of the players who were instrumental to Leicester's extraordinary title triumph - including Jamie Vardy, Riyad Mahrez, Danny Drinkwater, Kasper Schmeichel, Wes Morgan and Danny Simpson - were given new contracts last summer, as was manager Claudio Ranieri. In addition to substantial pay rises, however, those new deals are also understood to feature clauses stipulating punitive pay cuts in the event of relegation, which is now a real possibility with Leicester only one point above the relegation zone.

Summer signings, such as Islam Slimani and January recruit Wilfred Ndidi, are also believed to have agreed to similar terms, with the most severe stipulating a 40 per cent pay cut. Such relegation clauses are common practice at many of the smaller Premier League clubs, but not among title winners and a pay cut of 40 per cent would be unusually high.

Leicester's owners remain supportive of Ranieri despite the club's perilous position and dismal record of only five league wins all season. The Srivaddhanaprabha family have a track record of loyalty towards their managers, keeping faith in Nigel Pearson when Leicester seemed doomed to relegation before he conjured a remarkable escape two years ago, and have no plans to dispense with Ranieri.

[ Reuters adds: Leicester said on Tuesday that Ranieri would be given the opportunity to turn things around. "Leicester City Football Club would like to make absolutely clear its unwavering support for its First Team Manager, Claudio Ranieri," the club said in a statement on Tuesday.

Ranieri has played down recent media reports suggesting he has lost control over his dressing room.

"While there is a collective appreciation from everyone at the club that recent form needs to improve, the entire club is and will remain united behind its manager and behind its players, collectively and firmly focused on the challenges ahead," Leicester said.]

Leicester have a huge game on Sunday away to fourth-bottom Swansea City, who are below them on goal difference.