Arsenal's warning for Edu

Arsenal chairman Peter Hill-Wood today warned Brazilian midfielder Edu that the club will not be held to ransom over his wage demands.

Edu has rejected two offers of a new contract to extend his current deal which expires at the end of the season.

It is reported that he is wanted by three Spanish clubs - Barcelona, Real Madrid and Valencia - and if he does not agree terms at Highbury, then Arsenal must sell him when the transfer window opens next week or risk losing him on a free transfer in the summer.

But Hill-Wood made it clear that Arsenal will not break their strict policy over salaries. "We have a wage policy and it is a policy we have always stuck to and will stick to in the future," he said.

"Edu has been made a very good offer and we hopes that he accepts it and stays. He is a very good player and one that we do not want to lose. But it is dangerous to start paying players wages which are too high. That can cause problems, especially if players find out that someone is earning twice as much as they are.

"They will then want the same and that can have an inflationary effect on wages. Arsenal players are well-paid and they are paid fairly.