Arsenal are leading the race for Southampton prospect Luke Shaw.

The Daily Mail says the Gunners face a tough battle with Chelsea and Manchester City for the 16-year-old's signature.

Shaw is likely to cost around £4million despite not yet appearing for the Saints' first-team, although he was an unused substitute in the third round FA Cup tie with Coventry.

He is the latest product from the Southampton academy which has trained current top-flight players Gareth Bale, Theo Walcott and Alex Oxlade-Chamberlain.