New contracts for his Arsenal players will eat into an already modest summer transfer budget for manager Arsene Wenger, it has been revealed.

The Times says it is understood that any pay rises that are agreed this summer must come out of Wenger's £15 million transfer kitty, which will leave him little to play with.

Theo Walcott has already signed a new deal that trebled his wages to £60,000 a week, while Robin van Persie is in talks about signing a new four-year contact that would give him a £20,000-a-week increase.