State-run China Daily said that wage limit would amount to 75 percent of each club's annual income, reports Efe.
The move was discussed at the last meeting of First and Second Division executives of the Chinese Super League (CSL) and could be applied from 2021, giving the clubs two years to adapt to the new financial climate.
Over recent years, the CSL has attracted several foreign players by offering huge financial packages, often better than those available in Europe, to well established stars. Many CSL clubs have racked up huge debts in the process.
The proposed salary cap follows lucrative transfers of players such as former Argentina international Carlos Tevez, who last year was the world's highest paid footballer with a reported $45 million annual salary, during his one season with Shanghai Shenhua.
Barcelona star and World Cup winner with Spain, Andres Iniesta, is widely expected to move to the CSL after he announced his departure from the Catalan club last week.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
