Former Arsenal striker Alan Smith has said that Arsene Wenger was wrong to suggest that Theo Walcott should stay because he owes it to the club.

The 23-year-old is out of contract at the end of the season and negotiations have reportedly stalled until January.

Wenger is keen not to lose the England international in a similar scenario to the one that preceded Robin van Persie's departure, and hinted that Walcott should give back to the club that paid £12m for him as a 16-year-old.

However, Smith believes that that was the wrong approach.

"I don't agree with that," Smith told talkSPORT. "I know managers try to use that as a negotiating ploy but Arsene Wenger wouldn't have put Theo Walcott in the team if he didn't think he was good enough.

"As a manager, you pick the best 11 players at your disposal. You are not doing a favour to anybody just to try and develop them and help their career.

"He obviously thought Theo was good enough when he went in the team at 16, 17 and now that Walcott has developed he wants to get the best for himself. If you're not good enough, the club get rid of you."

Walcott signed for the Gunners in 2006.