Arsenal are said to be considering a surprise move to enter the race for in-demand Atletico Madrid star Radamel Falcao. The claim comes from the Daily Mirror, which states that Arsenal manager Arsene Wenger will be handed £35 million to spend as a result of the profits announced by the club last week.

Wenger had already stated back in August that he had money to spend and that if it wasn’t spent in the summer, he would use it in the next transfer window, in January.

“If Arsene wants to use that money during the winter window then, ­absolutely, he will be able to do it,” said chairman Peter Hill-Wood, according to the Mirror.

“We rely on him to come up with the right people and there will be funds available to him.”

Despite having money to spend, it appears unlikely that Arsenal will become a major factor in what is sure to be a fierce battle to sign Falcao. The Colombian striker has hit an incredible eight goals in six La Liga matches this season to further enhance his reputation as one of the world’s leading front men.

However, Chelsea are thought to be at the head of the queue to sign the 26-year-old. News also emerged over the weekend that Manchester City boss Roberto Mancini watched Falcao during Atletico’s 2-1 victory over Malaga on Sunday. According to the Daily Telegraph, City are interested in securing Falcao in January.

As has been seen with the likes of Eden Hazard, both Chelsea and City are likely to be able to significantly outbid Arsenal for the world's top talent. The Gunners are also unlikely to be willing to match the wages that would be on offer at Stamford Bridge and the Etihad.

Meanwhile, there has been fresh reports over the future of Arsenal winger Theo Walcott. The Daily Mirror claims that Wenger is set to hold further talks this week with the England international, who will be out of contract next summer.

Walcott has already turned down an extension offer from the club, while he has also suggested his future will depend on whether he is granted his desire to play as a central striker.

The 23-year-old has been linked with a move to Liverpool and Manchester City should he fail to agree on a package to stay at the Emirates. The Metro also reports over the weekend that Italian giants Juventus are interested and could open discussions over a pre-contract agreement in January.