THEO WALCOTT'S agent has revealed that Arsenal and Chelsea ARE interested in the Saints starlet - but the 15-year-old is set to commit his long-term future to Southampton.

Flying winger Walcott has been on the books of Key Sports Management for the last three months and Chelsea were yesterday reported to be lining up a £2m bid for the Newbury schoolboy.

Agent Warwick Horton has confirmed that there has been interest from Arsenal as well as Chelsea, but is sure the 15-year-old will stay at St Mary's.

He said: "There has definitely been interest from Chelsea and Arsenal but that is to be expected.

"Theo's already very highly regarded throughout the football world, he's one of the top three under-16 players in Europe.

"Clubs like Real Madrid and Monaco have been linked with him in the last few months because every European scout is aware of Theo's talent.

"But we don't want to put too much pressure on the lad and the best place for him to develop at the moment is Southampton.

"It promises to be a very exciting time for football fans down there over the next few years."

Walcott's burgeoning reputation increased when he scored a stunning volley and created the other two goals in a 3-1 win for England under-17s against France last month.

And his brilliant winner for Saints against Arsenal in the FA Youth Cup earlier this week has added to the speculation.

But Walcott, who goes to the Downs school in Compton, Newbury, signed a scholarship agreement with Saints two years ago, and last month he accepted the offer of a professional contract.

He cannot sign a professional contract until his 17th birthday but Saints are currently discussing a way of securing Walcott's long term future.

Academy director Huw Jennings said: "I'm surprised at the story linking Chelsea with Theo because we've had no official approach for any of the academy players from anyone.

"We're flattered by the story but Theo is a Southampton player and will continue to be so.

"Theo's very happy here, he signed a scholarship agreement when he turned 14 and we're discussing his long-term future at the moment."

Walcott's brilliant goal against Arsenal's under 18s has helped install Saints as the 7-4 favourites to lift the FA Youth Cup.

They are likely to play their quarter-final against West Ham, the 7-1 third favourites, at Upton Park on either March 8 or March 15.