Walcott has just 12 months remaining on his contract with the north London side and widespread reports in the British media are suggesting that the Gunners hierarchy is split on whether or not to cash in on the 23-year-old this summer.
The player currently earns around 65,000 pounds ($100,940) a week but is said to want closer to 100,000 pounds if he is to commit his future to the club.
Arsenal manager Arsene Wenger is determined to hang on to Walcott, who impressed with his performances for England at Euro 2012.
Both The Sun and The Daily Mail report that Liverpool boss Brendan Rodgers is considering a 15 million pound bid for the winger who he sees as an ideal candidate for his preferred playing style.
Chelsea’s interest in Walcott has been widely documented and are expected to enter the race for the player if Liverpool make a concrete offer.
On paper the Englishman known for his lightening pace has performed well for the club, contributing 11 goals and 12 assists last season, but the player’s lack of consistency has widely irked the Arsenal fan base, with the winger often being accused of drifting in and out of important games.
The future of Liverpool’s Andy Carroll is looking increasingly uncertain after it emerged Sunday that the club had rejected a loan offer from the striker’s former club Newcastle.
The Toon confirmed they had made an offer to bring the player back to the club where he made his name but that this has been turned down by Rodgers.
Carroll moved to Anfield for 35 million pounds in January 2011 in a deal which made him the most expensive British footballer of all time.
The player has struggled to adapt to life on Merseyside, with Rodgers revealing last week that he would consider offers for the 23-year-old.
The striker’s form improved toward the end of the season, earning Carroll a place in Roy Hodgson’s squad for Euro 2012.
Milan, Fulham and newly-promoted West Ham are also believed to be interested in a loan deal for the forward.
While Liverpool would prefer to sell the player, Carroll is unwilling to consider a permanent move away from the club and is said to be determined to be a success at the club.
Manchester United’s record signing Dimitar Berbatov has revealed that he plans to leave Old Trafford this summer.
Writing on his Facebook page, the Bulgarian striker admitted to being unhappy at only playing a bit role for the club last season.
“The truth is, I love this club but I am not going to be useful to anyone if I am not playing,” he wrote.
“I want to play [and] I want to help. But for unknown reasons it's not going to happen, or my chances will be limited, so it's better for everyone if we say goodbye.
“If not, I am professional and I will keep doing everything I can to help my team and my teammates, whenever I have opportunity to do so.”
Berbatov signed from Tottenham for 30.75 million pounds in 2008 but made just 12 league appearances for the club last season after falling behind Danny Welbeck and Javier Hernandez in the pecking order.
QPR boss Mark Hughes has distanced himself from speculation linking Welsh forward Craig Bellamy with a switch to Loftus Road.
Hughes has a longstanding relationship with Bellamy, managing the player during his time with Wales and Man City.
“There has been a lot of speculation over Craig,” Hughes is quoted as saying by The Sun.
“Yes I know him very well. But at the moment it is all speculation.”
Hughes confirmed that the club intend to add to their squad this summer, with the former Bayern Munich and Barcelona striker desperate for the club not to be drawn into another relegation battle next season.
“Now I have more time to prepare the side and get the quality players that were lacking before.
“I can say that QPR has a great future and obviously we will do better than last season. We are confident that we won't be struggling.”
Real Madrid’s pursuit of Luka Modric looks set to be resolved soon, with the Spurs midfielder on the verge of completing a 30 million pound transfer.
The two clubs are said to disagree over future fees to be paid by the Spanish champions, with Tottenham demanding a further 5 million should the Croatian international prove a success in Spain.
Real have attempted to include a number of players as part of the deal, with both Ricardo Carvalho and Nuri Sahin having been offered to the north London club.
An official announcement of a deal is expected within the next few days.
Former England manager Fabio Capello looks set to make a return to management with Russia.
The Italian’s appointment is expected to be imminently by the Russian FA after senior officials confirmed that Capello is their first choice to replace Dick Advocaat.
“Today we have decided to name Fabio Capello as the manager of Russia,” Russian FA vice-President Nikita Simonyan told Russian agency Itar-Tass.
“We are now waiting in Moscow for the finalization of the remaining details of the contract before he signs.
“Once [Capello] and his representatives arrive, we believe they will sign the contract. I think it will happen Wednesday or Thursday.”