Arsenal are set to sell England forward Walcott as well as German international midfielder Mesut Ozil in a January clear out, as manager Arsene Wenger reshapes his side and brings in funds.

Walcott, 28, has found himself on the fringes of the Arsenal first team this season, yet to start a Premier League game and confined to Europa League and League Cup duty.

The former Saints youngster has 18 months left on his current £110,000-a-week Arsenal contract and there are no plans to extend that.

Southampton have been struggling for goals this season under manager Mauricio Pellegrino and are looking to boost their firepower in the January transfer window.