Southampton received an initial fee of �5m for Walcott in 2006 (Getty)

Reports suggested their overdraft limit has been exceeded and the club is under pressure from their bank.

Chairman Leon Crouch said: "Like all clubs we have an overdraft facility, but we have not exceeded ours."

Walcott was sold to the Gunners in 2006 for a fee rising with staged payments to around �12m.

This kind of scaremongering, which has many inaccuracies, does the club no good at all Southampton chairman Leon Crouch

Crouch added: "There is a lot we would like to say in response to this story but unfortunately we have been placed in an offer period by the Stock Exchange who insist we remain in it, and whose rules therefore prevent us from talking about financial matters.

"What we can say is that Barclays continue to be supportive and we have a positive relationship.

"This kind of scaremongering, which has many inaccuracies, does the club no good at all."