Arsenal have reportedly decided to hold out for a £30m fee for out-of-favour forward Theo Walcott.

Since the start of the season, Walcott has only made five substitute outings in the Premier League, with his only starts coming in the EFL Cup and Europa League.

The 28-year-old has just 18 months remaining on his contract and although boss Arsene Wenger has said that he wants the attacker to remain at the Emirates Stadium, the England international continues to be linked with a transfer.

However, according to The Sun, the Gunners have decided that they are not prepared to part ways with Walcott on the cheap and will only consider offers of £30m or more.

Southampton are known to be interested in their former player, but Walcott is allegedly against joining the struggling south coast outfit on a permanent deal.

AC Milan and Everton are also said to be targeting the forward, but neither club are expected to be willing to meet Arsenal's asking price.