Chelsea are said to be closely monitoring Theo Walcott's situation at Arsenal.

The 23-year-old has 12 months remaining on his £70,000-per-week contract at the Emirates Stadium.

The Gunners are believed to value Walcott at £20m, but they could lose him on a free transfer next summer if he fails to commit to a new deal at the club.

Arsenal boss Arsene Wenger was reportedly frustrated by Walcott's inconsistent performances last season, which may be why the club have stalled over talks with the player.

However, regardless of his displays on the field, the England international's age and reputation make him one of the club's most valuable assets.

London rivals Chelsea are long-term admirers of Walcott and would be prepared to offer him a significant rise in his weekly wage if they could land him on a free transfer next season, according to the Daily Mail.

Walcott made 35 Premier League appearances last season, scoring eight goals.