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Arsenal reportedly take a step back in the race for Wilfried Zaha because they are close to persuading Theo Walcott to sign a new deal in North London.

Arsenal have reportedly decided to drop out of the race for Crystal Palace starlet Wilfried Zaha.

The 20-year-old has been heavily linked with the Gunners after enjoying a breakthrough season at Selhurst Park, which has included being handed a full England debut.

Zaha has fallen down the list of Arsene Wenger's transfer targets because he believes that Theo Walcott will sign a new deal at the Emirates, according to talkSPORT.

Manchester United and Chelsea have also been consistently mentioned in connection with a bid for Zaha.

Arsenal will now reportedly turn their attention to other players on a shortlist of potential signings, which includes Atletico Madrid forward Adrian Lopez.

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