AFL Rd 3 - Collingwood v St Kilda
MELBOURNE, AUSTRALIA - JUNE 20: Rowan Marshall of the Saints and Brodie Grundy of the Magpies compete in the ruck during the round 3 AFL match between the Collingwood Magpies and the St Kilda Saints at Melbourne Cricket Ground on June 20, 2020 in Melbourne, Australia. (Photo by Quinn Rooney/Getty Images)

Outgoing Collingwood ruckman Brodie Grundy is reportedly set to take a pay cut in his new deal with the Melbourne Demons.

Grundy is nearing a confirmed move to the Demons in this trade period, a switch the two-time Copeland Trophy winner is understood to be dissatisfied with.

But after ongoing conversations with his management, the Magpies and Melbourne, Grundy is set to see the remaining five years of his contract transferred over to the Demons as an agreement between the three parties nears.

"We've had conversations with Brodie about him getting across to Melbourne and we're a fair way down the track with that," Collingwood football boss Graham Wright said on Monday.

"We've had conversations with him for 12 months very open and honest... It's for medium to long-term planning rather than right now."

While Wright wasn't open to discussing the intricacies of Grundy's contract, The Age have revealed the South Australian will sacrifice some of his pay as part of his move to Melbourne.

MELBOURNE, AUSTRALIA - AUGUST 26: Brodie Grundy of the Magpies and Max Gawn of the Demons compete in a ruck contest during the 2017 AFL round 23 match between the Collingwood Magpies and the Melbourne Demons at the Melbourne Cricket Ground on August 26, 2017 in Melbourne, Australia. (Photo by Michael Willson/AFL Media/Getty Images)

A "small reduction" will be implemented as part of the new agreement, while Collingwood are said to be paying a portion of the contract.

Grundy's deal is said to be north of $900,000 per season, while the dual All-Australian's salary will be lower for the final two years of his deal in 2026 and 2027.

Collingwood's demands from Melbourne are placed at a draft pick in the first 25 selections, a sticking point in discussions with the Demons who currently don't hold a pick for the 2022 National Draft.

Melbourne are currently in negotiations with Fremantle over a trade for Luke Jackson, with the Demons likely to pocket multiple first-round selections in exchange for their young star.

One of those selections may be sent to Collingwood for Grundy, while the Demons also hold their own first-round pick for 2023.