Chelsea are readying a bumper deal for Atletico Madrid forward Radamel Falcao, while the Blues are set to tempt Arsenal by putting in a bid for Theo Walcott in January.

The Blues are ready to match Falcao's buyout clause of £48 million ($77 million), with Roman Abramovich determined to seal the striker's capture.

According to the Daily Mirror, Chelsea will also offer Falcao a £200,000 a week ($320,000) salary to try and tempt the Colombian to come to Stamford Bridge.

Manchester City and Real Madrid are the other two contenders for Falcao's signature, with the former having the resources to meet Chelsea's offer, and the latter being the frontrunner owing to the fact that the player would prefer a move to the Bernabeu.

It is understood, Fernando Torres will not be sold, and Chelsea, if successful, will use both strikers, either together or on a rotation basis.

Meanwhile, Chelsea are trying to get ahead of the line for Arsenal forward Walcott, by making a bid when the window opens in January.

Walcott is yet to agree a new deal with Arsenal, with his current contract expiring at the end of the season. That means the 23-year-old will be free to talk to clubs outside England and come to a pre-contract agreement, with Juventus thought to be an extremely interested party.

The feeling is Walcott will eventually sign on the dotted line and stay with Arsenal. However, if a contract is still not agreed by January, the Gunners might be forced to consider a sale, or risk losing their player for free in the summer.

Knowing the situation well, Chelsea are readying a bid in the region of £8 million ($13 million). Walcott, if he does decide to go to a new club, is keen to join a team in the Champions League, and the fact that the Blues are situated in London might be another aspect that goes in their favor.

Manchester United, Manchester City and Liverpool are also very much interested, and it remains to be seen where the England international ends up when the January window closes.