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Arsenal are considering offering Danny Welbeck a new contract to stay at the Emirates.

England striker Welbeck is making excellent progress in his recovery from a serious ankle injury and giving him a new deal is being discussed among the Gunners' hierarchy.

The 28-year-old is out of contract this summer and would be an attractive signing on a free transfer and it is understood there has been strong interest from Premier League clubs.

West Ham, Newcastle and Everton are all watching developments closely to see whether Welbeck leaves the Emirates this summer. There are no guarantees that he would decide to stay with Arsenal, as it may be they would want to offer a lower basic wage with playing bonuses because of his injury problem.

(Image: EMPICS Sport)

The other issue is that Welbeck would want to be playing regularly, and with other clubs likely to be interested he would have to make a rounded decision should Arsenal make him an offer.

He has been widely expected to leave having been out since last November, but Arsenal have already seen Aaron Ramsey sign to join Italian champions Juventus and losing another international for nothing in the same window could be seen as a costly mistake.

The main factor is that manager Unai Emery likes Welbeck, and values his versatility as a forward. The ex-Manchester United striker is also hugely popular within the dressing room.

(Image: Arsenal FC via Getty)

Arsenal want to strengthen in several areas this summer but will have limited funds — as little as £40m if they miss out on qualification for the Champions League either with a top-four finish or by kicking on from their semi-final place to win the Europa League.

They have been looking at Bournemouth and Scotland wideman Ryan Fraser , and are also seeking a new midfielder.

If they want a new centre-half too, they may have to sell before they can buy — so keeping Welbeck could make financial sense on top of him being a top-class player when fit.