More than a million NHS staff are to be offered a pay rise of 6.5% - in return for giving up a day's annual leave, according to a leaked document.
The Guardian newspaper reports the Government is prepared to increase salaries for the 1.3 million workers on the Agenda for Change contract, which includes all staff barring doctors, dentists and some senior managers.
Chancellor Philip Hammond announced an end to the pay freezes or 1% caps which had been in force when he unveiled his budget in November.
The Guardian reported the Treasury and Department for Health and Social Care will put forward plans which will see non-medical NHS staff receiving a 3% pay rise next financial year and 1-2% in the next two years.
Other staff would see their pay rise, owing to the scrapping of the 1% cap on salary increases, the paper added.
Government negotiators have said the forfeiture of the one day of annual leave is a "red line", according to the paper.
The Department for Health and Social Care said the department does not comment on leaks.