The club has felt the grip of the global financial crisis which almost bankrupted Iceland and the club's Icelandic owner Eggert Magnussen.

They have now tightened their belts and offered Neill a new deal to stay at the Hammers at the end of the season, but the Socceroo star has been see-sawing over a decision.

He has been linked to clubs like Manchester City and also a return to former club Blackburn Rovers as well as very strong rumour he was set to sign for Turkish giants Galatasaray alongside Socceroo team-mate Harry Kewell.

But he has also been linked with a move back to West Ham.

"Until 1 July he [was] a West Ham player," Duxbury told Hammers fansite, West Ham Till I Die. "The ethos of the club is to try to stop paying the ridiculous salaries that we have done historically, that got us into so much trouble.

"We haven't got a wage structure, but we have a wage system and all our top players are on pretty much the same money, which is good for team spirit and competitiveness. You want players in the changing room to be on similar salaries so there isn't any jealousy."

Neill was said to be on close to $150,000 a week on his previous deal which helped lured him away from a lower-paid offer to join Liverpool instead. The new deal is said to be almost half that amount.

"We have offered Lucas a good contract which will make him one of the top earners at the club, but I understand Lucas's position," said Duxbury.

"He was one of the first Eggert Magnussen contracts, and it was a very good contract. If I were him, I'd like to get that again. It would be superb. He believes that is what he should get. That's his right and I respect that.

"But we have given him a good offer. I hope he signs it, but if he doesn't, that's fine, we'll look elsewhere."

Duxbury now hopes Neill will come back to the club today to sign a new contract and join manager Gianfranco Zola as he begins the squad's pre-season training.

"Pre-season is July 6, so hopefully he will have decided to sign by then, but if not we will look to replace him," Duxbury told the website.

"At the moment we are in advanced discussions with a number of players, so if we do our business then that will be that. We'll see. It's down to Lucas."

He added: "He's a great player and that's why we have given him a great contract. We don't give contracts like we have offered to him lightly. It's a lot of money.

"It is his choice as to whether he wants to do it. It's more than just money. It's about his desire to play for Gianfranco, his desire to be part of what we are trying to achieve.

"The player has to want to be a part of that. It's very much down to Lucas now."