Walcott is out of contract with Arsenal at the end of the season and although talks are believed to be continuing over a new deal there appears to be no prospect as yet of him putting pen to paper. He can talk to overseas clubs about a pre-contract deal from 1 January.
The Gunners missed out on 24-year-old Argentina international Alvarez in July 2011 after seemingly being on the verge of securing his signature from Argentine side Velez Sarsfield, butInter came in with a late bid of £10.6million along with a £100,000-a-week pay package to see off Arsenal. However, Alvarez has failed to impress for the Serie A side and was linked late last year with a loan to the Emirates. He has 24 Serie A games under his belt for Inter – three of which have come this season – but nine of those appearances have been off the bench.
Calciomercato suggests that a cash adjustment might be paid to Arsenal to recognise Walcott’s higher value. The England international has also been linked with Liverpool, Manchester City, Chelsea and Inter’s Serie A rivals Juventus.