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Manchester City and Liverpool are on alert after Walcott rejects Arsenal contract extension
Theo has only one year left on his current contract and appears to have been unsettled by the departure of Robin van Persie.
Walcott joined from Southampton six years ago for £9.1m but the Gooners will be hoping to make a profit on the 23 year-old if they cannot convince him to stay.
The news is sure to alarm fans of the North London club as they look likely to lose another of their prize players to rival clubs.
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