ARSENAL may be able to save nearly £3 million on the transfer of Theo Walcott from Southampton.

The Championship side's financial problems have forced them to accept a reduced fee for the player.

Arsenal have so far paid £7 million for the 19-year-old, although the price was due to rise to £12 million with future incentives. However, according to the Guardian, the Saints' problems off the field have led to the South coast side accepting a total fee of £9.1 million for Walcott, with the remaining £2.1 million to be paid this year.