The Gunners currently has a £100,000-a-week wage limit.
The Sunday Mirror reports that Arsenal are ready to make a major change of direction following their 4-0 Champions League defeat at AC Milan.
The Arsenal board are ready to hand manager Arsene Wenger extensive funds to spend in the summer transfer market.
Arsenal hope the scrapping of their wage cap can see in-form striker Robin van Persie sign a new long-term contract with the club.
Van Persie’s current contract with the Gunners is set to expire at the end of next season.
