Spain international Santi Cazorla has agreed basic terms over a move to Arsenal, according to the Guardian.
Arsene Wenger has made Cazorla one of his prime targets for the summer, after learning about Malaga's financial woes, and the Guardian reports Cazorla has told Arsenal that he is ready to leave Malaga and move to London.
Arsenal have placed a €20 million (£15.6 million, $24.2 million) bid, and although Malaga initially pointed out to the €45 million (£35 million, $54.4 million) release clause, it is understood the Spanish club are ready to listen to offers, particularly after Cazorla made his intentions clear on a move.
Part of some of the Malaga players' salaries, including Cazorla's, has gone unpaid prompting the squad to complain to the president of the Spanish Players' Association. While the club is owned by Qatar's Sheikh Abdullah Bin Nasser Al-Thani, the Spaniards are struggling to make ends meet, with the club also owing a substantial amount of Cazorla's transfer fee to Villarreal, after the Spanish playmaker agreed a move last summer.
If the rich owners, who have put in a considerable amount since taking over, inject some cash, it might scupper the Arsenal deal, so it remains to be seen what the outcome is, as Malaga are under threat of relegation to the second division, if they do not sort out their finances.
Meanwhile, Walcott spoke about Arsenal's future, and revealed talks were ongoing over a new contract. The England winger has just one year remaining on his contract. "My agent and the club will talk things out and when there's something to be decided, I'll get involved," he told ESPNSTAR, during a visit to a Malaysian school.
"Of course I am excited about the future of the club," he said.
"Not many people recognise we've qualified for the Champions league so many years in a row.
"Now it is about stepping to the next level. A lot of our team now have experience, Champions League experience, so it is just about making that step up, which I'm confident we can do."
Asked about links with other clubs, Walcott said he was completely unaware of the reported interest. "I'm not at all fazed by the speculation," he added.
"I actually don't have a clue about all the reports. I just like to get on with things and work hard."
Arsenal and Juventus target Stevan Jovetic is likely to stay at Fiorentina, after the Italians club said they wanted to build their team around the 22-year-old. "I think that Stevan will stay with us and that the squad will be built around him to entertain the fans," communications director, Gionfranco Teotino told reporters.
"There is a lot of confidence and we want the player to be part of our project for the next year. We want to qualify for the Champions League with him being part of the project."
