Arsenal are ready to hand Danny Welbeck a new contract.

The Mirror says Welbeck is making excellent progress in his recovery from a serious ankle injury and giving him a new deal is being discussed among the Gunners' hierarchy.

The 28-year-old is out of contract this summer and would be an attractive signing on a free transfer and it is understood there has been strong interest from Premier League clubs.

West Ham, Newcastle and Everton are all watching developments closely to see whether Welbeck leaves the Emirates this summer. There are no guarantees that he would decide to stay with Arsenal, as it may be they would want to offer a lower basic wage with playing bonuses because of his injury problem.

The other issue is that Welbeck would want to be playing regularly, and with other clubs likely to be interested he would have to make a rounded decision should Arsenal make him an offer.