Arsenal legend Ray Parlour has called on Theo Walcott to sign a new contract with the club.

The England international has just one year left on his current deal with the Gunners and could leave the Emirates Stadium next summer as a free agent.

However, Parlour has urged the 23-year-old to put pen to paper on an extension with the North London outfit and feels that constant speculation of his future is hampering his chances of playing.

"Everyone wants to see Theo Walcott sign a new contract. He's got a lot of work to do on the pitch though and, at the moment, he's not playing," Parlour told talkSPORT. "He's a good player, but he needs to say whether he's staying or he's going and then concentrate on his football.

"All these contract talks can sometimes affect your game. He's probably thinking more about money and less about his game. It's one of those situations where the player has got to be happy with what he's got. I can never understand these wrangles over contracts.

"Sure you have a figure in your head which you're happy with and once that's been agreed then it's done. Whether Theo is holding his cards close to his chest and saying, 'well, I've got one year left on my contract, I want £100,000 a week', I don't know."

Walcott came off the bench in Arsenal's 2-1 win over Montpellier HSC on Tuesday night.