Cleary Gottlieb Steen & Hamilton is raising its salary rates for London trainees in a move that will make the New York leader the top payer for UK trainee lawyers.

The starting salary for new trainees next September will be £35,000, marking a 6% rise from the current salary of £33,000. The amount will soar to £40,000 in the second year, with newly-qualified lawyers receiving £74,000 as before.

Cleary trainees will become the highest paid in the City, along with Weil Gotshal's new recruits. Weil increased their trainee rates in September last year, although their second-year rate will not quite match Cleary's.

Magic circle trainee starting rates are set at around £29,000.

A spurt of trainee salary increases occurred in the late 1990s but levels have remained stable ever since in response to the slump in commercial activity.

Cleary graduate recruitment partner Simon Ovenden told Legal Week: "We do not follow what everybody else is doing. We are looking for top people and we should pay them at the top of the market."

The move, which comes amid expectations that major US practices will this year end the four-year freeze on lawyers salaries to award substantial rises, will also be seen as evidence of Cleary's renewed commitment to European expansion.

The New York firm has made a handful of notable appointments at its respected European network this year, including hiring Allen & Overy Italian senior partner Roberto Casati.