The British and Irish Lions squad could bank £1.7million if they win the three-match Test series with South Africa this summer.

The players are being paid a basic £38,000 each for taking part in the tour - a substantial increase on the £22,000 they collected from the disastrous 2005 tour to New Zealand which saw them hammered 3-0 in the Test series.

If the Lions can repeat the 1997 series win over South Africa they will receive an extra £350,000 bonus to be split equally between all of the players on the trip.

The financial package has been agreed between the Lions organising committee and player representatives with each of the four Home Union squads having a say in the final deal which has now been signed and sealed. The tour management under Ian McGeechan, the head coach, will be paid under a separate deal to the players and the Lions organisation are confident of producing the biggest profit in their history.

McGeechan and his fellow coaches and selectors met in London yesterday to identify the 35 players who will be named in the squad on 21 April with the captaincy appearing to be between the Irish pair of Brian O'Driscoll and Paul O'Connell.

But Martin Johnson, the England team manager, believes Wasps prop Phil Vickery is also in the frame having led England to the final of the 2007 Rugby World Cup.

The rules the Lions will have to play under will be the subject of heated debate in London early next week when the controversial Experimental Laws Variations are discussed at a special International Board meeting.

England will present exhaustive evidence to prove that allowing the maul to be pulled down has not helped the game while instigating a variation in numbers at the line-out has also created unforeseen changes to the way the game is played with very few throws to the back of the line-out.

Any major decisions will be made by the International Rugby Board on 13 May but Rob Andrew, the Rugby Football Union's elite rugby director, is confident England can get their message across before then.

Andrew said: "This meeting is about shaping the recommendations that will go before the Board and we have done a lot of work along with our Six Nations colleagues and the Premiership clubs and have come up with ideas to take things forward."