Everton 'favourites to sign Theo Walcott'

Everton have reportedly become the favourites in the race to sign Arsenal forward Theo Walcott this month.

The 28-year-old has been tipped to call time on his 12-year career at the Emirates after falling down the pecking order this term, with just five substitute appearances to his name in the Premier League.

Everton and Southampton have both been linked with bids for the England international in recent weeks but according to the Daily Mail, the Toffees are now "confident" that they will beat their rivals to his signature.

The newspaper claims that Walcott's wages are the sticking point in the negotiations, with the greater financial might of Sam Allardyce's side allowing them to get closer to his current pay packet of £110,000 a week.

Arsenal are thought to be willing to accept a transfer fee of around £20m for Walcott, who moved to the club from the Saints as a 17-year-old in January 2006.