Published Wednesday, 01 December 2010
The drop is belived to be "in excess of 5%" and it will also apply to his coaching staff, Marco Tardelli, Fausto Rossi, Mick Martin and Don Givens.
Trapattoni spoke with the FAI General Secretary John Delaney last month in Italy when the deal was struck.
The FAI have never disclosed the former Italy and AC Milan manager's salary but it is believed he earns €1.8m per year under a contract which will run until the end of the current European Championship qualifying series.
Trapattoni is considered the most successful club coach in the history of Italy's Serie A.