Australian Open organisers have moved to stave off the threat of a strike by leading male players by offering a record prize pot for the opening grand slam event of the 2013 season.

There were reports in August suggesting the tournament could be boycotted in a protest by players who believe they should be a given a higher percentage of tournament revenues. The issue, which was addressed at a players' meeting in Melbourne before last year's event, is centred around prize money for those who lose in the early rounds, having incurred travel costs to Australia.

The total pot in Melbourne in January will be A$30m (£19.3m), up A$4m (£2.6m) on the 2012 tournament, making it the richest in tennis history. Prize money for this year's Wimbledon amounted to £16.06m, while the US Open paid $24,054m (£14.9m).

"We are proud to announce this major increase in prize money. We have led the world in prize money for these incredible athletes and we want to ensure that the Australian Open continues to make a major contribution to the financial wellbeing of professional tennis players," said Steve Wood, the Tennis Australia chief executive.

Brad Drewett, the ATP's executive chairman and president, was happy with the decision. "We welcome the increase in prize money and acknowledge the ongoing efforts of Tennis Australia to recognise the role of the players in the success of the tournament. We also look forward with confidence to continuing these successful discussions with a view to a longer-term understanding."

Craig Tiley, the tournament director, said he was confident Rafael Nadal will have overcome a knee injury in time to play at the event. The world No.4 has been out of action since his surprise defeat by Lukas Rosol at Wimbledon.

"Expect Rafa to be one of many great stories in January," Tiley said. "[We expect] a formidable title defence from our brilliant reigning men's champion, Novak Djokovic, and some major challenges from the great Roger Federer, the US Open champion Andy Murray and any one of a group of [David] Ferrer, [Juan Martin] Del Potro, (Tomas) Berdych and (Jo-Wilfried) Tsonga."

Victoria Azarenka will defend her women's singles title at the tournament which runs from January 14 to 27.