Chelsea have reportedly failed in a bid to sign England winger Theo Walcott from Arsenal as doubts remain about his future in north London.
According to the Daily Express, the Blues had on offer of £25 million rebuffed for the 23-year-old who, like Arsenal captain Robin van Persie, is out of contract in 12 months.
Chelsea manager Roberto di Matteo, it is claimed, may now withdraw his interest in Walcott and focus on bringing alternative targets to Stamford Bridge before the close the transfer window.
It is still unclear, however, if Walcott will remain with Arsenal for the long-term as the England international and his representatives attempt to convince the Gunners to significantly increase his salary.
Walcott has reportedly told Arsenal that he wants wages of £100,000-a-week, which would seem to be an ambitious request given his standing in the team and the club's frugal approach.
Along with Chelsea, Liverpool have been credited with interest in Walcott as Brendan Rodgers sets about reinforcing the squad he inherited from Kenny Dalglish.