DOMINIC Matteo will have to take a pay-cut if he wants to become Graeme Souness's second major signing of the summer.

Blackburn Rovers officials have opened talks with Matteo's representatives about the possibility of moving to Ewood during the closed season.

But the Leeds United defender's huge salary -- which is believed to be around £40,000 a week -- may prove a stumbling block if negotiations reach an advanced stage.

As I understand it, Leeds are ready to let the 30-year-old leave Elland Road on a free in a bid to slash their crippling wage bill.

Rovers, Everton, Fulham and Manchester City are all keen on signing the former Liverpool star.

But a source close to the player told me today that Matteo would favour a move to Ewood if a suitable deal can be thrashed out.

The Scotland international already knows Souness, having played under him at Liverpool a decade ago, and he is keen on the idea of linking up with his former boss again.

Rovers' chief executive John Williams has already spoken to Matteo's advisers and further talks are planned for this weekend.

"We haven't agreed anything formally with Leeds as yet but we've spoken to his men," said Williams today.

"I plan to carry on talking to Leeds and his people over the weekend and we'll see what happens."

Leeds forked out £4.25 million to sign Matteo from Liverpool in the summer of 2000 and the versatile defender has proved to be a loyal servant during the last four seasons.

He has captained the side for the second half of that spell and he was one of the few players to emerge from the wreckage of United's relegation campaign with any credit.

The Scot would have been happy to stay and help the club get back on an even keel next season but Leeds' worrying financial problems mean a parting of the ways is now inevitable.

Matteo's versatility would make him a useful addition to Souness's squad as he can play at centre-back, left-back or even in a holding midfield role.

In the meantime, Rovers have yet to make a second bid for the Norwegian winger Morten Gamst Pedersen.

Their initial bid of £1.5 million (rising to £2m with add-ons) was rejected by Tromso late last week.