Arsenal and Chelsea remain locked in a battle to land Southampton's teenage striker Theo Walcott.

The south coast Coca-Cola Championship club confirmed they have received offers from two 'top Premiership clubs' - thought to be Arsenal and Chelsea - and are expecting a third to materialise shortly.

Arsenal had a bid believed to be £12million offer rejected at the weekend but manager Arsene Wenger is hopeful that a successful conclusion can be reached.

Saints chairman Rupert Lowe admitted the club had received two bids.

"We have now received a couple of offers and the indications are another may follow," he told www.saintsfc.co.uk.

"These have not been accepted or rejected at this stage."

Tottenham, Manchester United and Liverpool have also expressed interest in the youngster who can walk out on the club for a tribunal-set fee because he is only 16.

Walcott, a boyhood Arsenal supporter, is thought to prefer a move to the Gunners, but Chelsea's financial muscle will dwarf any offer on the table from other clubs.

Chelsea remained silent on speculation they were among the two clubs to have lodged a bid for the player and while the interest in the youngster continues to grow, Saints boss George Burley believes Walcott's best interests would be better served by staying put.

He added: "At the moment he is in the best place and doing tremendously well. He is playing regularly which is fantastic at his age.

"There has been a lot of talk but you have to consider the boy's future and I feel the best place for him right now is at Southampton. I have not spoken to him about his future but he is enjoying his training.

"I said from day one that I want to keep him as long as possible and this is the best place for him to develop and learn.

"I have worked with a lot of good youngsters but I have never had a 16-year-old playing regular first-team football before."

Walcott could leave for the tribunal-set fee despite having a pre-contract agreement with the St Mary's club to sign professional terms when he turns 17 in March.

The frontman has burst onto the scene in the Championship this season, after becoming the youngest player ever to represent the Saints - aged 16 years and 143 days - in the opening day draw with Wolves.

He continued to be used from the bench until making his first start at Leeds in October - which he marked with his first senior goal.