Earlier Downing Street declined to say whether David Cameron is ready to accept the expected above-inflation pay hike for MPs.
The PM's official spokesman told a regular Westminster media briefing:
I don't believe Ipsa have made a formal proposal yet. Any proposal that they make will be reviewed in mid-2015.
The Prime Minister's long-standing position is that the cost of politics should go down, not up. He doesn't think that MPs' pay should go up while public sector pay is being restrained.
Labour leader Ed Miliband has called for cross-party talks with the Conservatives and the Lib Dems over an expected 11% pay rise recommendation by the MPs' independent standards watchdog:
If the package of proposals being set out by Ipsa is as reported it cannot go ahead when people are going through the biggest cost-of-living crisis for a generation.
We cannot have an outcome for MPs which does not command public confidence.
Therefore we are asking the Conservatives and the Liberal Democrats for a cross-party approach which recognises the current economic circumstances where workers in the public and private sectors are going through such difficult times.
Labour's Jack Straw has said MPs pay must increase to attract "people of modest backgrounds" into politics.
The Independent Parliamentary Standards Authority (Ipsa) is expected to increase MPs' pay by 11 per cent to take effect after the 2015 general election.
Mr Straw, who will stand down as an MP at the next election, admitted there was never a right time to increase MPs pay but said the salary must be sufficient enough to attract a wide range of people including those who had not inherited family wealth or homes.
Speaking on Radio 4's The World This Weekend, the former Foreign Secretary questioned whether it was right MPs pay had "fallen so far behind" some primary and secondary school headteachers, local government figures and senior journalists.
"Most people would find it pretty extraordinary that [IPSA] would be recommending a large rise for MPs at a time when living standards in this country are under pressure," Chief Secretary to the Treasury Danny Alexander told ITV News.
"I would still appeal to IPSA even at this late stage to recognise that the economic climate - the climate of pay for people in the public sector particularly - is one of continuing restraint and that same principle should be applied to MPs," he said.
The chief executive of the TaxPayers' Alliance campaign group has said that the "public simply do not back the increase" to MPs pay.
Taxpayers will be furious that the pay rise comes at a time when MPs urge public pay restraint and the Chancellor tells us he can't afford to ease the burden of taxes on hard-pressed households and businesses.
Ipsa's own polling and research shows that the current level of pay to be broadly fair and that the public simply do not back the increase.
This announcement amounts to an unaccountable quango putting up two fingers to taxpayers. The rise must be rejected.
Among measures already on the table to offset the cost of the rise - which is 9 per cent higher than the rate MPs will be on by 2015 - was an end to "resettlement grants" of up to £65,000 for departing MPs.
Under the plans that would be reduced to two weeks' pay for every year of service if they are under 41, and three weeks if they are older by 2020.
A £15 dinner allowance would be scrapped, claims for tea and biscuits would not be allowed, and taxpayer-funded taxis home only allowed after 11pm.
There would also be a crackdown on claims for running second homes, with costs such as TV licences and contents insurance no longer being met.
People have reacted furiously on Facebook and Twitter over the news that MPs are to be handed a £7,600 pay rise.
The Independent Parliamentary Standards Authority's (Ipsa) original report conceded there is no "compelling evidence" that MPs' current salary level is deterring candidates, making people leave Parliament, affecting the diversity of the House or lowering the standard of ministers.
Ipsa said it had looked at increasing the current salary of £66,396 to anywhere between £73,365 and £83,430, but opted for the lower end "in recognition of the current difficult economic circumstances".
After 2015 wages would increase annually in line with average UK earnings.
Commons deputy speaker Lindsay Hoyle, a Labour MP, cautioned against interfering with the system that would decide MPs pay.
"I agree that MPs should not vote on their own pay," he told the Mail on Sunday.
"It should be left to an independent body. It's not in the gift of the party leaders."
In July, Mr Miliband predicted that Ipsa would drop the significant rise, but added: "If this was to go ahead I wouldn't be accepting this pay rise."
Mr Clegg said then that it was the "worst time" to advocate a double-digit pay rise.