Theo Walcott has rejected Arsenal's latest contract offer, and in the process alerting the likes of Liverpool and Manchester City.
However, talks are still ongoing between the two parties, with the Gunners hoping to tie down the forward to a five-year deal worth around £75,000 a week (118,600). Liverpool have been linked with a move for Walcott all summer, with the winger having just one year left on his contract.
It is believed the 23-year-old, who joined Arsenal as a 16-year-old from Southampton, will still, most probably, agree a new deal to stay with the Gunners, but Arsene Wenger will be ready to offload Walcott if an agreement cannot be made before the close of the transfer window Friday.
Wenger has stressed the importance of keeping Walcott at the club, as a major part of the English core that the manager is trying to build at the club.
The initial offer was made to Walcott's representatives on the weekend, which was rejected immediately. Further talks took place Tuesday, and if Wenger does not receive any assurance from Walcott of his willingness to stay at the Emirates, the Frenchman will sanction a £15 million ($23.4 million) sale.
City are interested in signing the talented, yet inconsistent forward, after a move for Scott Sinclair from Swansea City broke down. After selling Adam Johnson to Sunderland, Roberto Mancini is keen to find a replacement soon, but it remains to be seen whether Walcott would be open to a move to the Etihad, seeing as his first-team opportunities would diminish considerably.
Liverpool are also in the mix, with Brendan Rodgers still looking to strengthen his squad. While Clint Dempsey remains a target for the Reds, Rodgers might switch his attentions to Walcott, if the winger became available.
Meanwhile, Arsenal confirmed the sale of Henri Lansbury to Nottingham Forest for an undisclosed fee, believed to be in the region of £1 million ($1.5 million).
"Henri Lansbury has joined Nottingham Forest on a permanent deal for an undisclosed fee," the club said in a statement on their official website. "The 21-year-old midfielder, who has been associated with Arsenal since the age of eight, made a total of eight senior appearances for the club.
"Everyone at Arsenal would like to take this opportunity to thank Henri for his contribution to the club and wish him well in his future career."
Another youngster Daniel Boateng joined Oxford United on a loan four-month loan deal, which will last until January 2013.
