Arsenal fullback Kieran Gibbs refused to take a pay-cut to move to Watford this week.

The Mirror says contrary to reports, the Hornets were confident of reaching a compromise on the Gunners' £16million valuation for the England left-back.

It is understood, however, Gibbs was unwilling to compromise on his £80,000-a-week wages.

It left new Watford boss Marco Silva and the Hornets' hierarchy bemused as Gibbs is third choice at Arsenal behind new left-back Sead Kolasinac and Nacho Monreal.

Gibbs, who has 12 months left on his current contract, is also known to be one of the players for whom the Gunners are willing to listen to offers.

Chelsea midfielder Nathaniel Chalobah impressed Watford with his willingness to take a pay cut in order to seal his shock move from the Champions and play regularly.