Meanwhile Arsenal have offered a new deal to Jack Wilshere which includes lucrative incentives although the new offer is less than the current deal.
Everton are on the verge of completing their second signing of the January transfer window, with winger Theo Walcott set to undergo a medical on Merseyside ahead of a £20 million pound move from Arsenal, Sky Sports have confirmed.
It seems Walcott, 28, has played his last game for the Gunners, whom he joined from Southampton 12 years ago. "He's scored 100 goals for Arsenal from wide positions as well as many assists", Allardyce said.
Everton's offer is expected to fend off rivals, including Southampton. This season, he has made just six Premier League appearances for the Gunners, out of which none have been starts. "His pace is one of his key strengths which we lack in this squad".
Arsenal forward Sanchez will join the Red Devils after agreeing a four-and-a-half year deal
Everton are interested in Arsenal forward Theo Walcott and in his recent attempt to convince the England global to join the Toffees, manager Sam Allardyce has offered the player the position of his choice.
And with the FIFA World Cup 2018 in Russian Federation not far away, the 28-year old is keen on bolstering his slim chances of making it into Gareth Southgate's squad for the blockbuster event.
"We are short of goals so to add power in our goalscoring ability would be very important for me".
If a deal goes through, Arsenal plan to use the funds to reinvest, with concrete interest in Borussia Dortmund striker Pierre-Emerick Aubameyang and Bordeaux forward Malcom.