The 12-year-old was to receivejust £75,000 for the schoolboy wizard's first movie and £125,000 for the sequel.

 

But actors' union Equity furiously demanded that Dan get a fairer  slice of the financial action.

 

And they threatened to boycott further Harry Potter projects if his "paltry" salary wasn't boosted.

 

Harry Potter and the Philosopher's Stone is expected to be biggest film of the year. Massive box office receipts and merchandising could net. Warner Bros more than £1billion.

 

A movie insider said: " It was scandalous that Dan was being paid so little when the movie is going to be so big.

 

"He is the face of Harry Potter and without Dan they would have a real problem.

 

"Dan is going to be on merchandising products that are going to generate untold millions - him getting a couple of hundred thousand hardly seemed fair." The actor signed his original contract durring final auditions for the lead role along with four other young hopefuls.

 

They were told that anyone who didn't sign would be ruled out of the film.

 

Daniel's dealremained the same until the actors' union stepped in to help.

 

Equity spokesman Martin Brown said: " We have come to an arrangement with Warner Bros that will cover the whole series of Potter films. This will give all main performers a share of the film's success."

 

The new arrangement will mean Dan's that earnings will easily top £1million.

 

Harry Potter may have cost more than £100million to make but that will pale into insignificance when it hits the cinema in two weeks.

 

The film made £95million months befor its opening when Coca-Cola signed the biggest marketing partnership in history to use the wizard's image on its cans.

 

In Britain some families are expected to spend £40million on Potter products this christmas. Toys on offer include the Harry Potter doll, electronic broomsticks and a Hogwarts Express train kits.

 

Although JK Rowling has granted Warner Bros the rights to her character, she retains a tight hold on how it can be used.

 

The author insisted some of the money from the Coke promotion was used to fund Third World literacy programmes.