German Chancellor Angela Merkel is trying to persuade her British counterpart, Prime Minister David Cameron, to support a compromise capping European Union spending at 1.0 percent of European gross domestic product, the newspaper reported without revealing its sources.

"If there isn't a deal that's good for Britain, there won't be a deal," Cameron said last week, according to the report.

"We can't have European spending go up and up and up when we are having to make difficult decisions in so many different areas."

Merkel will be in London in early November to meet with Cameron, the FT said. The budget summit is scheduled for November 22 and 23.