Arsene Wenger: 'Desire is there' for Arsenal to agree new Theo Walcott deal

Arsenal are increasingly confident of signing Theo Walcott on a new long-term contract.

The England forward is in the final season of his current deal and has been linked with both Manchester clubs, Chelsea and Paris St Germain.

But manager Arsene Wenger revealed this morning that the two parties are now close to an agreement.

He said: "We are talking. It's difficult to be predictable in these situations but we are ready to do it.

Asked if he was encouraged by the latest developments, he answered: "Yes."

Wenger was less forthcoming on his transfer targets, though, and added: "We have to make sure the players who are here stay here and then we look outside."

Wenger also admitted there could be players leaving the club, including defenders Sebastien Squillaci and Johan Djourou .

"Squillaci, if he finds a club, will certainly go. Djourou might go somewhere too. That will be decided in the next 48-72 hours."