Arsenal will not discuss new terms with Theo Walcott until after the Euros.

The Daily Mail says Walcott's contract expires at the end of next season meaning he could leave on a free transfer in 2013 and start negotiating with a foreign club at the turn of the year.

Despite the fact he only has 12 months left on his deal the Gunners value Walcott at in-excess of £20million and the prospect of losing him for nothing is a worry.

Chelsea are known to be monitoring Walcott's situation and will be kept informed of how talks regarding his future develop.