Liverpool boss Brendan Rodgers.

The 23-year-old’s contract is set to expire at the end of the season, and has so far rejected offers from Arsenal to extend his current deal. Walcott turned down a 75k-per-week contract , saying he wants more game time and would prefer to play up front as oppose to the right wing.

Arsene Wenger may be tempted to cash-in on the England International instead of losing him for free in the summer. It is believed Liverpool are considering an £8million bid to convince the Gunners to allow Walcott to leave for Anfield in January.

Currently, Liverpool have one senior striker available – Luis Suarez. Fabio Borini is out injured with a broken foot and Andy Carroll was exiled to Upton Park at the start of the season. The Reds have been linked to a number of forwards, most notably Daniel Sturridge and Wilfried Zaha, however both transfers appear to be unlikely.

Following Chelsea’s 5-4 victory over Manchester United in the Capital One Cup, Blues boss Roberto Di Matteo dismissed speculation over England International Daniel Sturridge’s future at the London club.

“I get asked about speculation but I am very happy with him” said the Italian. “He’s our striker and as far as I’m concerned he’s part of this team.”

Meanwhile, Crystal Palace striker Wilfried Zaha has been labelled with a £12million price-tag. Liverpool will be up against a host of Premier League teams to sign the England U21, including Tottenham, Arsenal, Manchester City and Manchester United.

Furthermore, The Eagles have denied the player’s availability. Co-Chairman Steve Browett told a club forum “I can assure you that Wilfried is not ‘for sale’.

“He’s only 19 and still learning his trade in surroundings where he is comfortable and happy. He’s on a five-year contract and we really don’t need the money.”

Theo Walcott appears to be Liverpool’s most likely option for a January signing. Arsene Wenger, speaking after the Englishman’s fantastic performance in the Capital One Cup against Reading, told reporters: “I wouldn’t like to [sell Walcott]. I’ve not even thought about that, because at the moment I think we will still manage to make a deal with him.

“But there is urgency. How much I don’t know, but there is urgency. We want to sort it out before Christmas, one way or the other” added the French coach.