Theo Walcott has verbally agreed terms over a new deal with Arsenal.

The London Evening Standard says Walcott has agreed the framework of a new three-and-half-year deal and Arsenal are expecting him to sign it next week.

The contract is in the hands of lawyers and, although the exact structure of the deal is yet to be finalised, it is believed the total package is worth in the region of £20million, which includes a seven-figure signing-on fee.

It is thought Walcott could earn as much as £100,000 a week, including bonuses and other performance-related incentives.

The new contract does not contain any formal assurance that the 23-year-old will play as a centre-forward although manager Arsene Wenger has insisted Walcott will be deployed in his favourite position in future.